Month End Glossary

Working Papers

Working papers are the documents and records that accountants or auditors use during financial analysis and reporting, typically as part of month-end close processes.

Working papers, often referred to as workpapers, are the supporting documentation that accountants, auditors, and finance professionals prepare and use to accumulate and document evidence supporting financial transactions, reporting, and conclusions. These papers can include checklists, schedules, reconciliations, analyses, and other documentation prepared during month-end close procedures, financial audits, or other accounting tasks.

For example, during a monthly reconciliation, the accountant might create working papers to compare a company's retained earnings ledger account balance with the retained earnings value shown on the balance sheet. They might also prepare a schedule of other comprehensive income to ensure its inclusion in the financial statements ties back to both the general ledger accounts and specific detailed entries.

Working papers are critical as they provide a structured and clear audit trail, demonstrating the procedures performed, evidences gathered, and decisions made throughout the financial reporting or audit process. They play a vital role in ensuring accuracy, compliance, and accountability in financial reporting.

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