Question

“I have finished my testing of footings of the cash journals,” said the assistant auditor to...

“I have finished my testing of footings of the cash journals,” said the assistant auditor to the
senior auditor. “Shall I state in the working papers the periods for which I verified footings,
or should I just list the totals of the receipts and disbursements I have proved to be correct?”
Prepare an answer to the assistant’s question, stressing the reasoning involved.

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Answer #1

Audit working papers are considered to be the auditors' property those can be used for future references. It acts as an evidence for the procedures the auditor has performed in an audit conducted for a specific period. Evidences collected by the auditor during the audit process and the conclusions reached forms part of audit working papers.

Therefore it would not be sufficient to just list the total receipts and disbursements which are proved to be correct but also include the periods for which the cash journals have been tested.

In case if period for which the footings are verified is not mentioned, the auditor may not be able to identify the correct period for which the cash journals have been reconciled and reported while reviewing the working papers in the future.

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