An audit working paper is a document prepared by the auditor to document all the information, evidence, and analysis obtained during the audit process. This document is abbreviated KKA, and in English it is called an audit working paper.
KKA is not just a work record. This document is the supporting evidence underlying the auditor's opinion on the fairness of the financial statements, and also proof that the audit was carried out in accordance with professional standards. Without adequate working papers, an audit opinion is practically indefensible if questioned.
This article covers the definition of audit working papers, their elements and contents, objectives and functions, the characteristics of good working papers, their types, the permanent and current files, a sample format, how to prepare them, and the retention requirements.
What Is the Definition of Audit Working Papers (KKA)?
Audit working papers are records prepared and gathered by the auditor during the audit engagement, containing the information and evidence underlying its conclusion. KKA is the link between the work the auditor performs in the field and the audit opinion that is ultimately issued.
What does KKA stand for?
KKA stands for Kertas Kerja Audit (Audit Working Paper). In the public-sector audit and government internal examination environment, the term often used is KKP or kertas kerja pemeriksaan. Both refer to the same documentation, only differing in naming convention.
Is Working Paper Sama dengan Kertas Kerja Audit?
Working paper is the English equivalent of kertas kerja, and in an audit context it is written in full as audit working paper. This term is widely used at public accounting firms that follow international standards, while Indonesian-language documents and regulations generally call it kertas kerja audit or KKA. There is no difference in meaning between the two.
What Are the Elements and Contents of Audit Working Papers?
The information elements contained in audit working papers include engagement identity, documentation of work performed, and the conclusions drawn by the auditor. The following are the elements generally required on every KKA sheet.
| Element | Content | Its Function |
|---|---|---|
| Identity | Name of the entity audited, audit period, name of the account or process examined | Ensures working papers are not mixed up between engagements |
| Index and cross-reference | KKA numbering code and references to other related working papers | Makes it easier to trace from a finding to its supporting evidence |
| Testing objective | The assertion or risk to be tested through that procedure | Connects field work to the audit plan |
| Procedure performed | Description of the testing steps, data source, and sample extent | Shows that the work can be repeated and verified |
| Evidence and results | Copies of documents, calculation results, interview notes, test marks (tickmark) | Forms the factual basis for the conclusion |
| Conclusion | The auditor's conclusion on that testing objective | Bridges the evidence to the final opinion |
| Preparer and reviewer | Name and date of the preparer and re-review | Confirms accountability and the level of supervision |
See also: Example of a Company Audit Working Paper
What Are the Objectives, Functions, and Benefits of Audit Working Papers?
The benefits of audit working papers boil down to the following four main functions.
1. Support the Auditor's Opinion
KKA is the strong evidence underlying the auditor's opinion on the fairness of the financial statements. Through the working papers, the auditor shows that the audit was carried out thoroughly and competently, and that all relevant evidence was considered before the opinion was given.
2. Documenting the Audit Process
KKA contains detailed records of the entire audit stages that was followed, from planning through completion. This documentation is important to show regulators, quality reviewers, and users of the financial statements how the auditor worked and reached its conclusions.
3. Improving Audit Quality
Well-organized KKA helps the auditor maintain the quality of their work in several ways:
- Ensure all relevant evidence has been appropriately considered and analyzed.
- Helps the auditor identify and address potential audit problems earlier.
- Improves consistency and objectivity of the audit across engagements.
4. Improving Auditor Accountability
Audit working papers are evidence of the auditor's accountability for their work. KKA can be used to explain the basis of the auditor's opinion to other parties, while also showing that the auditor has met the applicable professional standards.
What Are the Characteristics of Good Audit Working Papers?
The quality of KKA determines the quality of the audit as a whole. Here are five characteristics of good, proper audit working papers.
1. Completeness
KKA must contain all relevant information and evidence obtained during the audit process, so it is clearly shown that the auditor considered all evidence before giving their opinion. The information included covers the audit program, audit evidence, audit analysis, audit report, and other supporting working papers.
2. Accurate
KKA must be free of errors and reflect the actual conditions. Inaccuracy in working papers carries three consequences: it raises doubt about the auditor's credibility, it can potentially result in an inappropriate opinion, and it opens the door to information manipulation by irresponsible parties.
3. Organized
KKA must be organized with a consistent and logical numbering and naming system. Well-organized working papers make it easier for the auditor to find needed information, help track audit progress, and improve the efficiency of the whole engagement.
4. Clear
KKA must be written clearly and concisely in language that is easy to understand, avoiding excessive technical jargon. The practical benchmark is simple: another auditor not involved in the engagement should be able to understand what was done just by reading the working papers.
5. Consistent
KKA must be consistent with the audit program, audit report, and other information obtained during the engagement. There must be no contradiction between the content of the working papers and the reported conclusion, because such inconsistency directly weakens the auditor's opinion.
What Are the Types and Forms of Audit Working Papers?
Audit working papers come in various forms, each with its own use in supporting the engagement. Here are five commonly used types of KKA.
1. Audit Program
Contains the audit plan to be carried out, including the audit objective, audit procedure, and the tests to be performed. The audit program is prepared before execution and serves as the auditor's guide throughout the engagement.
2. Bukti Audit
Contains the information and evidence obtained by the auditor during the audit process, which can be in the form of:
- Copies of documents: invoices, receipts, contracts, and financial statements.
- Auditor's note: results of observation, interviews, and testing.
- Data analysis: financial ratio analysis and trend analysis.
3. Audit Analysis
Contains the auditor's analysis of the information and evidence obtained, including explanation of audit findings, assessment of the risk of material misstatement, and the development of the audit conclusion.
4. Audit Report
Contains the auditor's opinion on the fairness of the financial statements along with other important information obtained during the engagement. The audit report is the final output of the audit process and is addressed to the entity's management, the board of directors, and users of the financial statements.
5. Other Supporting Working Papers
- Audit memo: notes and internal communication among audit team members.
- Correspondence working paper: correspondence with the entity's management and with external experts.
- Reconciliation working paper: reconciliation between data obtained by the auditor and data in the financial statements.
What Is the Difference Between the Permanent File and the Current File?
In a financial statement audit, working papers are usually grouped into two files. This split separates information used across years from the documentation of tests for the current period.
| Aspect | Permanent file (permanent file) | Current file (current file) |
|---|---|---|
| Content | Deed of establishment and its amendments, organizational structure, long-term contracts, accounting policies, notes on the understanding of internal control | Current-year audit program, working trial balance, lead schedules and supporting schedules, summary of adjusting entries, confirmation results, finding memos |
| Period of use | Used across periods and updated when there are significant changes | Specific to one audit period |
| Purpose | Provides an ongoing understanding of the entity | Documents the tests and conclusions for the current period |
What Are the Working Trial Balance, Lead Schedule, and Supporting Schedule?
The current file is usually arranged in layers. The working trial balance (working trial balance) shows the balance of each account before and after adjustments. From there, the lead schedule (lead schedule) summarizes similar accounts, for example all cash and cash equivalent accounts. The supporting schedule (supporting schedule) contains the details and tests for each account, for example the bank reconciliation for one account. Indexes and cross-references link these three layers, so a reviewer can trace a figure in the financial statements down to the test evidence.
What Does a Sample Audit Working Paper Format Look Like?
The example below is a simple supporting schedule for testing the cash balance. The entity name, initials, and figures are for illustration only.
| Entity | PT Contoh Sejahtera |
| Account | Cash and cash equivalents |
| Period | December 31, 2025 |
| Working paper index | A-2 (lead schedule: A) |
| Prepared by | RA, January 12, 2026 |
| Reviewed by | DS, January 15, 2026 |
| Account | Balance per books (Rp) | Balance per bank (Rp) | Difference (Rp) | Description |
|---|---|---|---|---|
| Bank A current account | 245,300,000 ✓ | 251,800,000 ¢ | 6.500.000 | Outstanding checks, traced to the January 2026 bank statement (A-2.1) |
| Bank B current account | 118,750,000 ✓ | 118,750,000 ¢ | 0 | Agreed |
| Petty cash | 5,000,000 ✓ | Not applicable | 0 | Physically counted on December 31, 2025 (A-2.2) |
| Total | 369.050.000 Σ | Agrees to lead schedule A |
Tickmark legend: ✓ agreed to the general ledger; ¢ agreed to the bank confirmation reply; Σ footed; A-2.1 and A-2.2 are cross-references to the detailed working papers.
Conclusion: the cash and cash equivalents balance as of December 31, 2025 of Rp369,050,000 is fairly stated. No adjustments are proposed.
Another working paper example for internal audit is in the article examples of corporate audit working papers.
How Do You Prepare Audit Working Papers?
- Start from the audit program. Each procedure in the audit program becomes one working paper or one part of a working paper.
- Fill in the identity and index. Include the entity, period, account or process, and the index code that follows the team's numbering system.
- Write the test objective. State the assertion or risk being tested so the reviewer knows why the procedure was performed.
- Record the procedure, data sources, and sample. The description must be detailed enough for another auditor to repeat the same test.
- Attach evidence and add test marks. Every tickmark must be explained in the legend.
- Draw a conclusion and submit it for review. The conclusion answers the test objective, then the preparer and reviewer add their names and dates.
What Are Common Mistakes in Preparing Working Papers?
- Test marks without a legend, so the reviewer does not know which test was performed.
- A conclusion that does not answer the objective, for example only repeating figures without stating whether they are fairly stated.
- Broken cross-references between the lead schedule, supporting schedule, and evidence.
- Evidence without a source, for example figures that do not say which document they come from.
- Review without a trail, meaning working papers that do not show who reviewed them and when.
How Are Audit Working Papers Owned and Stored?
Audit working papers belong to the auditor or the public accounting firm carrying out the engagement, not to the entity being audited. Even so, that ownership comes with an obligation to maintain the confidentiality of all client information contained in them.
Auditing Standard (SA) 230 on Audit Documentation asks the auditor to assemble the documentation into the final audit file on a timely basis after the date of the auditor's report. Its application guidance says an appropriate time limit is generally no more than 60 days, and audit documentation is generally retained for no less than five years from the date of the auditor's report. After the final file has been assembled, documentation must not be deleted or discarded before its retention period ends.
At the regulatory level, Article 38 of Minister of Finance Regulation Number 186/PMK.01/2021 on the Guidance and Supervision of Public Accountants requires Public Accountants to prepare working papers that describe their process and work results and are adequately prepared in line with the Professional Standards for Public Accountants (SPAP). A violation can lead to a license suspension of at least 1 year and at most 2 years. A Public Accountant applying to resign must also state that they will keep working papers for at least 5 years from the issuance of the report, or hand over their storage to the firm (Article 11).
FAQ About Audit Working Papers
What are audit working papers?
Audit working papers (KKA) or audit working paper are documents auditors create to record the information and evidence obtained during the audit process. They serve as supporting evidence for the auditor's opinion on the fairness of the audited entity's financial statements.
What does KKA stand for?
KKA stands for Kertas Kerja Audit (Audit Working Paper). In the public-sector audit environment, the same documentation is often called KKP or kertas kerja pemeriksaan (examination working paper).
Working paper what is it?
Working paper is the English term for kertas kerja, and in an audit context it is called an audit working paper. Its meaning is exactly the same as kertas kerja audit or KKA.
What information elements are in an audit working paper?
The elements generally required: engagement identity, index and cross-reference, testing objective, description of the procedure performed, evidence and test results, the auditor's conclusion, and the name of the preparer and reviewer along with the dates.
What is the function of audit working papers in the audit process?
There are four main functions: supporting the auditor's opinion, documenting every audit stage from planning to completion, improving audit quality, and increasing the auditor's accountability for their work.
What are the characteristics of good audit working papers?
Five characteristics: complete (containing all relevant information and evidence), accurate (free of errors and reflecting the true state), organized (consistent arrangement and naming), clear (concise and easy to understand), and consistent with the audit program and audit report.
What are the types of audit working papers?
Five commonly used types: audit programs, audit evidence, audit analysis, audit reports, and other supporting working papers such as audit memos, correspondence working papers, and reconciliation working papers.
What is an example of an audit working paper?
The most common example is a supporting schedule for testing the cash balance: a list of accounts, balances per books and per bank, differences with explanations, test marks with a legend, cross-references, and the auditor's conclusion. Other examples include the audit program, the working trial balance, the summary of adjusting entries, and finding memos.
What is the difference between the permanent file and the current file?
The permanent file holds information used across periods, such as the deed of establishment, long-term contracts, and accounting policies. The current file holds documentation for one audit period, such as the audit program, the working trial balance, lead and supporting schedules, and confirmation results.
What is tickmark in an audit working paper?
Tickmark is a test mark, such as a check mark or another symbol, that shows which procedure has been performed on a figure. Every tickmark must be explained in a legend on the same working paper.
Are public accountants required to prepare working papers?
Yes. Article 38 of Minister of Finance Regulation 186/PMK.01/2021 requires Public Accountants to prepare working papers that describe their process and work results and are adequately prepared in line with the SPAP. A violation can lead to a license suspension of 1 to 2 years.
How long must audit working papers be kept?
Under the guidance in Auditing Standard (SA) 230, audit documentation is generally retained for no less than five years from the date of the auditor's report. Assembly of the final audit file is generally completed no later than 60 days after the date of the auditor's report.
Who owns the audit working papers?
Audit working papers belong to the auditor or the public accounting firm carrying out the engagement, not to the entity being audited. This ownership comes with an obligation to maintain the confidentiality of client information.
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