Final answer:
Internal audit engagement teams create working papers to aid internal auditors by documenting the audit process and findings. While they can indirectly benefit management, external auditors, and shareholders, the primary purpose is to support the internal audit's work.
Step-by-step explanation:
Internal audit engagement teams prepare working papers primarily for the benefit of internal auditors. The primary purpose of these working papers is to document the audits and reviews performed, provide support for the audit work done, and ensure that there is a clear record of the analysis, procedures, information obtained, and conclusions reached by the internal audit team.
The internal auditing documents serve as evidence for the internal audit team's work and are particularly useful for enabling audit quality assurance, facilitating planning and performance of future audits, and enhancing the coordination with external auditors. They also provide valuable information to management and can be used as a communication tool for audit findings and recommendations. However, these papers are not primarily prepared for management, external auditors, or shareholders but they might benefit from them indirectly, especially when the internal audit findings are shared with these groups to improve corporate governance and provide accurate financial information.