Workpaper Documentation & Review Notes

# Workpaper Documentation & Review Notes

Strong workpaper documentation is the backbone of every accounting engagement. AI does not perform the procedures, but it documents them faster and more consistently than writing from scratch.

Workpaper Narrative Drafting

Draft a workpaper narrative for the following audit procedure:

Procedure performed: Accounts Receivable Confirmations
Period: Year ending December 31, 2024
Client: [Manufacturing company, $50M revenue]

Details:
- Total AR balance at year-end: $4.2M across 342 customer accounts
- Stratification: 15 accounts over $50K (totaling $2.8M),
  47 accounts $10K-$50K, remainder under $10K
- Confirmation approach: Positive confirmations sent to all accounts over $50K
  and a random sample of 20 accounts between $10K-$50K (35 total confirmations)
- Response rate: 28 of 35 (80%) confirmed without exception
- 4 responses had differences (detailed below)
- 3 non-responses — alternative procedures performed

Differences noted:
1. Customer A: Confirmed $52K, our records $58K — $6K difference due to
   payment in transit (cleared 1/3/25)
2. Customer B: Confirmed $0, our records $23K — customer applied credit
   memo not yet recorded by client
3. Customer C: Confirmed $41K, our records $44K — $3K relates to
   disputed shipping charges
4. Customer D: Confirmed $85K, our records $85K but different invoice detail