Audit files are the record or a set of audits working papers of the planning and execution of the audit engagement. Auditors retain a set of working papers for each audit engagement for each year. These working papers are systematically filed in files. These files are called Audit Files. The file of audit working papers for the current year is referred to as the current file. The file of working papers that are relevant to more than one audit engagement or core documents are often kept separately in a file referred to as permanent file. Filing of audit documents is as important as audit work.
In the other hand, documents created or obtained during an audit engagement are called Audit Working Papers. These documents are created or obtained in whole exercise, i.e. from appointment to completion of the audit engagement. Working papers comprises all papers created or obtained during engagement, planning, execution and reporting and include Audit working paper supports that the audit works done is in order, sufficient and appropriate audit evidences have been obtained and reasonable assurance audit conclusion can be made in due course.