You are in charge of a group of audit trainees who have just been employed by your audit firm. This is the audit trainees‘ first assignment and they are aware that they are supposed to prepare audit working papers but they do not know how to do so or what information they should include in the audit working paper.‘Required: Identify the type of information that the audit trainees should include in the audit working papers

1. Information concerning the legal and organizational structure of the entity.
2. Extracts of copies of important legal documents, agreements and minutes.
3. Information concerning the industry, economic environment and legislative environment within which the entity operates.
4. Evidence of the planning process including audit programmes and any changes thereto.
5. Evidence of auditor‘s understanding of the accounting and internal control system.
6. Evidence of inherent and control risk assessments and any revisions thereof.
7. Evidence of auditor‘s consideration of the work of internal auditing and conclusions reached.
8. Analyses of transactions and balances.
9. Analyses of significant ratios and trends.
10. A record of the nature, timing and extent of audit procedures performed and the results of such procedures.
11. An indication as to who performed the audit procedures and when they were performed.
12. Letters of representation received from the entity.
13. Conclusions reached by the auditor concerning significant aspects of the audit.
14. Copies of the financial statements and auditor‘s report. Financial statements of previous years are also necessary.
15. Copies of bank mandates and specimen signatures

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