This file will contain matters pertinent to the current year’s audit. It will contain:
1. A copy of the accounts being audited signed by the directors.
2. An index to the file.
3. A description of the internal control system inform of questionnaires, flowcharts or written documents together with specimen documents.
4. Audit programme.
5. A schedule of each item in the balance sheet. Each schedule should show:
- Balance at the beginning of the year, changes during the year and balance at the end of the year.
- Details of its existence, ownership and appropriate disclosure have been verified.
6. A schedule for each item in the profit and loss account showing its make up.
7. Check list for compliance with statutory disclosure requirements. Accounting standards and auditing standards.
8. Record of queries raised during the audit and coming forward from previous audit.
9. Schedule of important statistics e.g. output, net profit margin, gross profit margin, sales composition, liquidity ratios.
- A record or abstract from the minutes of:
- The company
- The directors
- Any internal committee of the company whose deliberations are important to the auditor.
11. Letters to the client setting out weaknesses in the internal control.
12. Letters of representation.