What does this exactly mean and some examples please?

Guest007 Registered Posts: 54 💫 🐯 💫
I am sorry for asking silly question. Please forgive me.

I am working in practice and helping here and there our accountants. I am confused about the meaning of the followings:

• A set of working papers e.g. for a limited company client- what sort of docuemtsn this includes

• Preparation papers- What are they?

• Supporting documents- Does it mean my records?

I find them very confusing. Can somebody kindly explain that to me?


  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 🎆 🐘 🎆
    I don't think there are standard definitions. If there are, I've never used them.

    working and preparation papers to me are the same things: journals, rough workings to get to some figures, nominal printouts with notes etc, ETB.

    Supporting documents are evidence and records (bank statements, client correspondence confirming a particular treatment etc.

    Just my interpretation. We just do work and file it.
  • Psyche
    Psyche Registered Posts: 187 🎆 🐘 🎆
    "Supporting documents" generally means proof -- i.e. a request for payment must have evidence attached to it to justify the payment, either an invoice, letter, remittance advice or something similar that provides proof (generally for the auditors) of why a payment has been made.
    Hope this helps!
  • burg
    burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
    Just to expand slightly

    Working papers can also include various control accounts and workings - i.e. VAT control showing the o/bals, ouputs, inputs, VAT paid, refunds received and closing balance.

    Then a working to show any difference between the closing balance and the final VAT Return.

    The final VAT Retun would then be a 'supporting document'.

    Many accountants perform different checks and therefore have different working papers.

    Mine are often but not always:-

    Format below is Working papers ~ Supporting docs)

    Fixed Assets ~ receipts/invoices for new assets and disposed assets
    Stock & WIP ~ Clients valuation
    Debtors & Prepayments ~ Clients debtors list
    Creditors & Accruals ~ clients creditors list
    Bank Reconciliation Control ~ final bank statement
    VAT Control ~ final VAT Return
    Wages Control ~ Payroll records
    PAYE Control ~ P35 / P32
    A breakdown of Sundries ~ Receipts / Invoices for anything unusual / of value
    A breakdown of Repairs ~ Receipts / Invoices for anything unusual / of value
    TB from clients software

    I may do more comprehensive working papers etc than others, I'm not sure, but certainly this is what I was always taught to do and is always what I ask for when asking for professional clearance and what I provide for professional clearance. I often get all this, particularly from larger firms but not always.

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