Regulators always ask for our internal auditors work papers. We outsource our audits, which means that we have to request the work papers. Should the auditing firm routinely provide us with the work papers?

Unless requested to leave a set when they exit, you will have to ask. Put it in the engagement letter next year.

Al

Al is correct. The control of the workpapers should be addressed in the engagement letter. I have seen it work both ways. Some firms also provide a copy to the client at the time the final report is issued. Just be aware that it may very well have a cost involved. Many CPA firms maintain control of the workpapers, but make them readily available to the examiners at the time of any examination.

We have a co-sourced internal audit arrangement and use electronic workpapers. Copies of current year and prior year are accessible here at the Bank on my computer. However, I obviously don't want an examiner to have that kind of access - it's just easy if they want to see something specific.

When we get our first day letter I let the firm know and they send copies of the WPs on CD. The WPs are locked at that point and are in a read only form. I just give them the CD and they do whatever they need to do for their records.

When I/A is outsourced ... I've seen several engagement letters that indicate the working papers are the property of the accounting firm. A provision is included in the engagement letter that the working papers will be made available for review if requested by the regulators. In the Texas area ... the regulators somtimes arrange an on-site visit to the accounting firm's office to review the working papers ... or they coordinate for a representative from the accounting firm to meet them on-site at the bank.