LSUHSC – SHREVEPORT
INTERNAL AUDIT POLICY MANUAL
SUBJECT:
Working Paper
Preparation
DATE ISSUED: December 4, 1998
DATE REVISED: October 8, 2002
NUMBER: II-E
PAGE 1 OF 3
Working papers that document the audit should be prepared by the auditor. These
documents should record the information obtained and the analyses made and should
support the basis for the findings and recommendations to be reported.
A. Purpose of working papers
 Provide evidential support for the internal auditor’s report.
 Aid in the planning, performance, and review of audits.
 Document the achievement of audit objectives and completion of all audit
procedures.
 Facilitate third-party reviews.
 Provide a basis for evaluating the Internal Audit Department’s quality assurance.
 Provide support in circumstances such as insurance claims, fraud cases, and
lawsuits.
 Aid in the professional development of the audit staff.
 Demonstrate compliance with the Standards.
B. Audit working papers should be complete and include support for audit conclusions
reached. Among other things, working papers may include the following:
 Planning documents and audit programs.
 System analysis flowcharts or narratives.
 Notes and memoranda resulting from interviews.
 Auditee organizational charts and job descriptions.
 Copies of contracts.
 Department and institution-wide policies and procedures.
 Analyses and tests of transactions.
 Results of analytical reviews.
 The audit report and management responses.
C. Regarding working paper design, each document should contain the following
elements:
 The document should be affixed to the white pre-printed backing paper or blue
pre-printed backing card stock, as applicable.
 A heading with the name of the audit and a description of the specific working
paper.
 The date and the auditor’s initials should be recorded in the lower right-hand
corner of the working paper.
 Each working paper should contain an index number for cross-reference.
 All tick marks should be explained in a legend format.
 Other notes, explanations, or evaluations may be added, as applicable.
D. The Director of Internal Audit will establish the standard format for working paper
indexing. The following criteria apply:
 For research and regulatory working papers that are not specific to a particular
section, will be placed in a section that will begin with the letter “P”. Other
working paper sections can be referenced to the “P” section.
LSUHSC – SHREVEPORT
INTERNAL AUDIT POLICY MANUAL
SUBJECT:
Working Paper
Preparation
DATE ISSUED: December 4, 1998
DATE REVISED: October 8, 2002
NUMBER: II-E
PAGE 2 OF 3

For the detail working papers, index letters will begin with “A” and continue
through the alphabet (skipping letter P) for as many sections as applicable.
 Index letter “A” will be reserved for the audit report and subsequent responses
from management. Section “B” will be reserved for administrative working
papers.
 Therefore, for detail testing working papers, the first section of the audit program
will begin with the letter “C” and continue for each subsequent section.
E. Review of working papers:
All audit working papers prepared by staff personnel should be reviewed to
ensure they properly support the audit report and that all necessary internal
auditing procedures have been performed. Evidence of supervisory review
should be documented in the working papers. Review notes may be written;
however, oral communication is acceptable.
F. Working Paper Ownership, Access, and Retention:
Audit working papers are the property of the organization. The files are under
the control of the Internal Audit Department and are accessible only to authorized
personnel. Management review may be granted to substantiate or explain audit
findings or to utilize audit documentation for other business purposes. The
Director of Internal Audit must approve all requests for access to audit working
papers. The content of all audit working papers is to be held in strict confidence.
Working papers will be stored in department file cabinets; except when space
limitations arise and the working papers will be stored in permafile boxes. If
necessary, the department will make arrangements to rent storage space via
Auxiliary Services. Audit working papers should be retained for a minimum of 10
years; the retention period may be extended if warranted depending on the
useful life of the documentation.
G. Working Paper Summaries:
At the end of each audit section, a brief summary will be prepared covering the
objective of the review, procedures followed, test results, auditor’s comments,
and the final audit conclusions and recommendations. The summary should be
completed immediately after the completion of the audit section and should not
be too detailed. Information included elsewhere in the working papers should be
referenced, not repeated. For detail testing working paper summaries, the audit
objectives and the audit scope period should be included in the summary via
index cross-reference from the audit program. All audit comment numbers,
written and oral, should be documented in the summary.
H. Audit Comments:
Audit comments, in their entirety, should not be included in the audit sections.
The final comments will be included in section “A”.
LSUHSC – SHREVEPORT
INTERNAL AUDIT POLICY MANUAL
SUBJECT:
Working Paper
Preparation
I.
DATE ISSUED: December 4, 1998
DATE REVISED: October 8, 2002
NUMBER: II-E
PAGE 3 OF 3
Administrative Section:
The administrative section of the working papers is used to document all relevant
correspondence relating to the audit. The auditor should prepare a memo
documenting meetings held and oral conversations spoken relating to the audit.
Copies of all memos sent to auditee should be included in the administrative
section. The standard procedure requires the inclusion of the audit scope and
objectives, the preliminary audit program, and the detail testing audit program in
the administrative section. The auditor should document all relevant activity in
the administrative section. An index of all items included in the administrative
section shall be prepared for ready reference.