University Of Sargodha

Assignment
Class:
BS Commerce (Reg)
Subject Name:
Accounting
Submitted By:
Muhammad Ammar Nadeem
Zain Raza
Anwar
Shahzaib
Roll Number:
BUSC51F22R035
BUSC51F22R013
BUSC51F22R046
BUSC51F22R041
Submitted To:
Mam. Mahwish Rafeeq
Department:

Malik Firoz Khan Noon Business School

Working paper in account

A working paper in accounting is a document used to support and record financial transactions,
calculations, and analyses. It is typically a temporary document used for internal purposes, such as:

1. Recording and calculating financial data

2. Reconciling accounts
3. Preparing financial statements
4. Conducting financial analysis and planning
5. Supporting auditing and accounting procedures

Working papers can include:

- Spreadsheets
- Calculations
- Financial models
- Draft financial statements
- Supporting schedules and documents
- Notes and memoranda

Working papers are an essential tool for accountants, auditors, and financial professionals to ensure
accuracy, completeness, and transparency in financial reporting and decision-making.
Functions:
Working papers in accounting perform the following functions:

1. Documentation:
Record financial transactions, calculations, and analyses.

2. Calculation:
Perform mathematical calculations, such as depreciation, amortization, and accruals.
3. Reconciliation:
Reconcile accounts, such as bank statements and ledger accounts.

4. Financial statement preparation:

Support the preparation of financial statements, like balance sheets and income statements.

5. Analysis:
Facilitate financial analysis, such as trend analysis, ratio analysis, and variance analysis.

6. Audit support:
Provide evidence for auditors to verify financial statements and disclosures.

7. Internal control:
Document internal control procedures and test results.

8. Financial planning:
Support financial planning and budgeting processes.

9. Error detection:
Help identify errors or discrepancies in financial records.

10. Reference:
Serve as a reference for future financial analysis or auditing purposes.

Working papers play a crucial role in ensuring the accuracy, completeness, and reliability of financial
information.
Objectives:
The objectives of working papers in accounting are:

1. To support financial statement preparation:

Provide accurate and complete financial data for financial statements.

2. To facilitate financial analysis:

Enable financial analysis, planning, and decision-making.

3. To document accounting procedures:

Record and document accounting procedures and internal controls.

4. To support auditing and review:

Provide evidence for auditors and reviewers to verify financial statements and disclosures.

5. To ensure accuracy and completeness:

Verify the accuracy and completeness of financial data.

6. To facilitate internal control evaluation:

Document and evaluate internal control procedures.

7. To support financial planning and budgeting:

Provide financial data for planning and budgeting purposes.

8. To identify errors and discrepancies:

Detect errors or discrepancies in financial records.

9. To maintain audit trail:

Provide a clear and transparent record of financial transactions and events.

10. To meet regulatory requirements:

Comply with accounting standards, laws, and regulations.
By achieving these objectives, working papers play a vital role in ensuring the reliability, accuracy, and
completeness of financial information.
Working papers in accounting typically consist of the following parts:

1. Cover page:
Includes the company name, working paper title, date, and preparer's name.

2. Index:
A table of contents outlining the working paper's sections and pages.

3. Introduction:
Briefly explains the working paper's purpose and scope.

4. Financial statements:
Includes draft financial statements, such as the balance sheet and income statement.

5. Supporting schedules:
Detailed breakdowns of financial statement line items, like accounts receivable and accounts payable.

6. Calculations:
Mathematical calculations, such as depreciation and amortization.

7. Reconciliations:
Reconciliations of general ledger accounts to external records, like bank statements.

8. Analysis:
Financial analysis, like trend analysis and ratio analysis.

9. Notes:
Explanatory notes and comments on specific transactions or accounts.
10. Appendices: Additional supporting documents, such as contracts and agreements.

These parts may vary depending on the specific purpose and scope of the working paper.
Format:
The format of working papers in accounting typically includes:

I. Header

- Company name
- Working paper title
- Date
- Preparer's name

II. Index

- Table of contents outlining sections and pages

III. Introduction

- Brief explanation of purpose and scope

IV. Financial Statements

- Draft financial statements (e.g., balance sheet, income statement)

V. Supporting Schedules

- Detailed breakdowns of financial statement line items (e.g., accounts receivable, accounts payable)
VI. Calculations

- Mathematical calculations (e.g., depreciation, amortization)

VII. Reconciliations

- Reconciliations of general ledger accounts to external records (e.g., bank statements)

VIII. Analysis

- Financial analysis (e.g., trend analysis, ratio analysis)

IX. Notes

- Explanatory notes and comments on specific transactions or accounts

X. Appendices

- Additional supporting documents (e.g., contracts, agreements)

XI. Footer

- Page numbers
- Date

Note: The format may vary depending on the specific purpose and scope of the working paper.
Types:
Working papers in accounting can be categorized into several types, including:
1. Financial Statements Working Papers: Support the preparation of financial statements, such as the
balance sheet and income statement.

2. Account Reconciliation Working Papers: Reconcile general ledger accounts to external records, like
bank statements.

3. Calculation Working Papers: Perform mathematical calculations, like depreciation and amortization.

4. Analysis Working Papers: Facilitate financial analysis, such as trend analysis and ratio analysis.

5. Supporting Schedules Working Papers: Provide detailed breakdowns of financial statement line items.

6. Audit Working Papers: Support the audit process, including testing internal controls and verifying
financial statements.

7. Tax Working Papers: Support tax return preparation and planning.

8. Budgeting and Forecasting Working Papers: Facilitate financial planning and budgeting processes.

9. Financial Modeling Working Papers: Develop financial models to predict future performance.

10. Specialized Working Papers: Address specific accounting issues, like lease accounting or pension
accounting.

These types of working papers may vary depending on the organization, industry, and specific accounting
needs.