AUDIT FILE
This is a file normally created by the auditor where all audit working
papers are kept for documentary purpose.
It is usually to split audit working papers between two files one
containing those working papers relating especially to the period under review
and one containing those papers likely to be required from period to period.
Audit file is classified into two
via-permanent and current file
A. PERMANENT FILE: This is file contain document and matters of continuing important which
will be required for more than one audit. It will provide the auditor with
environmental and business information concerning the client's affairs, which
he requires to carry out an effective audit. The contents of permanent audit
file will include: -
1. Brief description and history of business.
2. Address of registered offices of the company
3. Organization chart
4. Copy of memorandum and article of association.
5. List of books of account maintained
6. Codes of account
7. Accounting system documentation
8. Authorities and specimen signatures
9. Details of issued and authorized share capital
10.
Details of
reserves
11.
Details of
freehold and leasehold premises
12.
Details of
depreciation policy
13.
Issuance
arrangement banking arrangement and facilities
14.
The financial
history
15.
Pension
arrangement
B. CURRENT FILES: The current file should contain working papers in respect of the year
review. It should contain schedules supporting the financial statements under
review a record of the audit used and the work done in respect of each aspect
of the financial statement, the content will include the following:
1. Accounts
2. Analytical review (including forecast, budget etc)
3. Trial balance journal entries
4. Minutes
5. Post-balance sheet even contingencies and commitment
6. Share capital statutory books
7. General review notes and points forward including copy of management
letter of representation and certificates of directors emoluments.
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