Multiple choice

Directions: Choose the correct option for the given question.

Consider the following statements: Audit working papers are maintained because

  1. They act as a guide to subsequent audit.
  2. They verify the arithmetical accuracy of the books of accounts.
  3. They provide evidence of the work performed by the auditor. Which of the statements given above are correct?

  1. (1) and (2) only

  2. (2) and (3) only

  3. (1) and (3) only

  4. All of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statement 1 is correct - working papers provide a roadmap for future audits by documenting what was done. Statement 2 is incorrect - working papers themselves don't verify accuracy; they document the verification procedures performed. The audit procedures verify accuracy, not the papers. Statement 3 is correct - working papers serve as primary evidence of audit work performed, supporting the auditor's opinion.

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