Final answer:
Working papers in auditing document the purpose and results of control tests, the auditor's conclusion about control risk, and the evidence supporting their opinion.
Step-by-step explanation:
Working papers are vital documents in the auditing process. They serve as a record of the audit procedures performed, the auditor's conclusion, and the evidence gathered to support the auditor's opinion. These papers are not merely a daily log of the first-year auditor's activities, but rather a comprehensive documentation covering key components of the audit engagement.
The working papers typically include:
- The purpose of the control selected for testing.
- The procedures the auditor used to test the control.
- The results of the tests performed.
- The auditor's assessment of control risk and the basis for this assessment.
- The conclusions the auditor has drawn from the results of the testing.
It's important to note that working papers are meant to provide a clear and detailed path of the auditor's work, so they should contain sufficient detail to allow an experienced auditor with no previous connection to the audit to understand them.