Cpascribo's Podcast

Seven Excuses for Unnecessary Audit Work Papers Over the last thirty years, I have reviewed audit files for CPA firms and have commonly asked this question: Why is this work paper in the file? Here are a few standard answers. 1. It was there last year. But is it relevant this year? Resist the temptation just to copy or bring forward work papers from the prior year. Performing a proper audit entails risk assessment (e.g., walkthroughs, analytics), planning (i.e., creating an audit plan), and execution (i.e., carrying out the audit plan). Likewise, compilations and reviews should reflect current year planning and performance. 2. The client gave it to me. For some reason, young auditors tend to put everything given to them in the file. I think they believe, "if the client gave it to me, it must be important." There is one reason to place documentation is the file: It provides audit evidence to support the opinion. 3. I may need it next year. Then save it—somewhere other than the audit file—for next year. If the