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Articleship students often cannot tell what belongs in an audit file or how to record a test so a reviewer can follow it.
Under SA 230, document the nature, timing and extent of each procedure, the evidence obtained and the conclusion, so an experienced auditor with no prior link could understand the work.
Audit programme, lead schedules per area, detailed test sheets, tick mark legend, confirmations, query list and review sign-offs.
A complete audit file that shows how each balance was tested and why the opinion was reached.
Audit working papers are the auditor’s file of what was planned, what was tested, what evidence was seen and what was concluded. They are kept under SA 230, the Standard on Auditing for audit documentation, so that an experienced auditor who was not on the job can pick up the file and follow the work.
If it is not in the working papers, for audit purposes it was not done.
What goes into an audit file?
| Item | What it is | Example |
|---|---|---|
| Audit programme | The list of procedures to perform for each area | ”Obtain bank reconciliation at 31 March and test reconciling items” |
| Lead schedule | Summary sheet for one area | Bank and cash: all accounts, balances, references |
| Detailed test sheets | Record of samples tested | 25 payments vouched to invoices and bank debits |
| Tick marks | Symbols showing what was checked | A tick for “agreed to bank statement” |
| Confirmations | Letters from banks, debtors, creditors | Bank confirmation received directly |
| Query list | Questions raised with the client and answers | ”Explain ₹7,000 deposit not credited” |
| Sign-offs | Who prepared and who reviewed, with dates | Prepared by article, reviewed by manager |
What is an audit programme, and how does it differ from working papers?
The audit programme is the plan: what the team intends to do. The working papers are the record: what the team actually did and found. A programme step such as “test unpresented cheques for clearance after year-end” becomes a working paper listing each cheque, its amount, the date it cleared in April and a tick mark beside each.
A programme with no matching working paper shows a step that was planned but not evidenced. Reviewers look for exactly that gap.
Worked example: a bank lead schedule for ₹12,40,000
Client: Arora Engineering Pvt Ltd. Area: Bank, HDFC current account. Year-end: 31 March 2026.
| Line | Amount | Source | Tick |
|---|---|---|---|
| Balance as per bank statement | ₹12,85,000 | Bank statement page 14 | Agreed to bank confirmation |
| Less: cheques issued, not yet presented (4 cheques) | ₹52,000 | Bank reconciliation | Each traced to April clearance |
| Add: deposit made 31 March, credited 1 April | ₹7,000 | Bank reconciliation | Traced to April statement |
| Balance as per books | ₹12,40,000 | Trial balance | Agreed to ledger |
Arithmetic: ₹12,85,000 minus ₹52,000 plus ₹7,000 equals ₹12,40,000.
Conclusion written on the schedule: “Bank balance of ₹12,40,000 is fairly stated. All reconciling items cleared within 7 days of year-end. No exceptions.” Prepared and reviewed initials and dates follow.
Notice what the schedule depends on: the client’s bank reconciliation. If that reconciliation has old, unexplained items, the working paper cannot reach a clean conclusion.
What should the client’s finance team hand over?
- Bank reconciliations for every account at year-end, with each reconciling item listed by date and amount.
- Bank statements for the first weeks of the new year, so clearances can be checked.
- Ledgers and the trial balance in a format the auditor can filter.
- Agreements, approvals and board minutes for large transactions.
- One index sheet naming each file, so the auditor can reference it in the working papers.
What to read next
- What is a bank confirmation in an audit and how does it tie to your bank reconciliation?
- Statutory audit execution for CA firms
- Statutory audit reconciliation checklist
- Related: reconciliation software India
Content authored by practitioners with experience at Amazon India, Intuit QuickBooks, and the Tata Group. Meet the team →