Since the owner, Jim, is a qualified accountant, he would like to reduce professional fees by assisting with the preparation of working papers. Jim has purchased a basic accounting software package, which he uses to record transactions. He still does all the accounting for his business.
REQUIRED
List five working papers that Jim could prepare for the audit of his business by your firm. What concerns would you have about the working papers prepared by Jim? What additional audit work would your firm need to do to be able to rely upon these working papers?