Audit Tick Marks: Common Symbols, Legends and Documentation Rules

Tick marks are the small symbols auditors put next to numbers on a workpaper to show what was done to them. A check mark next to an invoice amount might mean "agreed to the invoice." A small "F" under a column might mean "footed." Used well, tick marks let a reviewer see in seconds which procedures were performed on which items. Used badly, they are decoration that proves nothing.

This guide covers common tick marks, how to write a legend, how tick marks work in electronic workpapers, and how they fit the documentation requirements in AU-C 230.

What are audit tick marks?

Audit tick marks are shorthand annotations that record a specific procedure performed on a specific item. Each mark stands for a sentence. Instead of writing "agreed to the vendor invoice, noting no exception" beside 40 sample items, the auditor puts a symbol beside each one and explains the symbol once in a legend.

Tick marks are not required by any standard. What is required is documentation of the nature, timing and extent of procedures, the results, and the items tested. Tick marks are simply the most efficient way to show that on a schedule with many items.

Common audit tick marks

Symbols vary by firm. The table below shows a typical set and the procedure each one usually represents.

Some firms use letters with subscripts or circled letters (a, b, c) for one-off procedures specific to a single workpaper. That is fine, as long as the legend on that workpaper explains them.

Vouching vs tracing

Two marks that are often confused are worth spelling out because they test different assertions:

• Vouching goes from the recorded amount back to the source document. Selecting items from the sales journal and agreeing them to shipping documents tests whether recorded sales actually happened (existence or occurrence).
• Tracing goes from the source document forward to the records. Selecting shipping documents and tracing them to the sales journal tests whether everything that happened was recorded (completeness).

If a workpaper uses one symbol for both, the reviewer cannot tell which direction was tested. Use separate marks. The audit assertions guide explains which direction supports which assertion.

How to write a tick mark legend

Every workpaper that uses tick marks needs a legend, either on the workpaper itself or as a clear reference to a standard firm legend kept in the file. A good legend entry describes the procedure in enough detail to re-perform it.

Weak legend entry:

✓ Agreed.

Better legend entry:

✓ Agreed invoice number, date, vendor and amount to the original vendor invoice and to the receiving report; noted the invoice was approved by the controller. No exceptions except as noted.

The better version says what was compared, to what, and what was checked along the way. A reviewer can read it and know exactly what the mark means.

Legend tips

• Put the legend where it is used. A legend on a separate index page forces the reviewer to flip back and forth. If the firm keeps a standard legend, reference it on each workpaper and still define any workpaper-specific marks locally.
• Do not reuse a symbol for two procedures on the same workpaper.
• Describe exceptions separately. An exception mark should point to a note that explains what was found, how much, and how it was resolved.
• Avoid "N/E" as a substitute for a procedure. "No exception" tells the reader the result, not what was done.

Worked example: a sample of fixed asset additions (illustrative)

Here is how tick marks look on a small test of fixed asset additions. The data are illustrative. Assume the auditor selected all additions over $25,000 and a sample of smaller items.

Legend:

• ✓ Agreed vendor, date and amount to the original invoice and to evidence of receipt or installation.
• A Inspected approval of the purchase per the client's capital expenditure policy.
• R Recalculated depreciation for the partial year using the client's policy and useful life; agreed to the depreciation schedule.
• ⓐ Asset was placed in service in October. Depreciation recalculated at $1,395 (three months on a five-year life); client recorded a full year of $5,580. Overstatement of $4,185 is above the clearly trivial threshold and is carried to the summary of misstatements. See W/P F-3.
• F Footed.

The legend tells the reviewer what was done to each item, and the exception note explains the one difference and how it was evaluated. A reviewer can re-perform any line from this information.

Tick marks and AU-C 230

AU-C 230 requires audit documentation that is sufficient to let an experienced auditor with no previous connection to the audit understand the nature, timing and extent of procedures performed, the results and evidence obtained, and the significant findings and conclusions. When documenting the nature, timing and extent of procedures, the auditor records the identifying characteristics of the specific items or matters tested.

Tick marks support each of these requirements:

Tick marks do not satisfy everything on their own. AU-C 230 also requires recording who performed the work and the date it was completed, and who reviewed the work and the date and extent of the review. A workpaper full of marks with no preparer and reviewer sign-off is incomplete.

Electronic tick marks

Most firms now work in audit software or spreadsheets, which changes how tick marks are applied but not what they must show.

• Use the software's tick mark library so marks are consistent across the engagement and have built-in descriptions.
• Do not rely on cell color alone. Color-coded cells without a legend, or colors that do not print, leave no durable record of the procedure.
• Avoid formulas that generate "agreed" marks automatically unless the comparison is genuinely what the procedure requires and the logic is documented. A formula that compares two numbers both typed by the preparer proves nothing.
• Link tie-outs where possible. A cell linked to the trial balance file is better evidence of agreement than a "TB" mark typed next to a hard-coded number, as long as the link points to the final trial balance version.
• Lock workpapers after sign-off so marks cannot change after review without a record.

Common tick mark problems

• Marks with no legend, or a legend that does not match the marks used.
• Legends too vague to re-perform, such as "✓ Verified."
• Marks applied to items that were not tested, for example a check mark down an entire column when only a sample was examined.
• Exceptions marked but not explained or not carried to the summary of misstatements.
• The same symbol used for vouching and tracing.
• Marks added after the review date with no explanation.

A tick mark is a claim that a procedure was performed. If the work behind the mark was not done, the mark misstates the work performed.

Building a firm tick mark standard

A firm standard saves time and makes review easier:

1. Choose a short list of standard marks for the procedures used on almost every engagement.
2. Write one-sentence descriptions for each that a staff auditor can apply as written.
3. Build them into the audit software or workpaper templates.
4. Allow workpaper-specific marks, but require a local legend for them.
5. Cover the standard in new-staff training and check it in internal inspection.

The broader structure of audit workpapers, including indexing and cross-referencing, is covered in audit working papers: types and how to prepare them.

Frequently asked questions

Are audit tick marks required by GAAS?

No standard requires tick marks specifically. AU-C 230 requires documentation of the procedures performed, the items tested, the results and the conclusions, and tick marks with a clear legend are the most common way to meet that on detailed schedules.

What does a check mark mean on an audit workpaper?

It means whatever the workpaper's legend says. Most commonly it means the item was agreed to a supporting document such as an invoice or contract, but the legend should state exactly what was compared.

Do electronic workpapers still need a tick mark legend?

Yes. The software may store a description for each mark, but the description must still explain the procedure clearly, and any custom marks or color codes need to be defined.

What is the difference between footing and cross-footing?

Footing means adding a column of numbers and agreeing the total. Cross-footing means adding across a row, or adding column totals across, and agreeing that to the grand total.

Can one legend be used for the whole audit file?

Yes, many firms keep a standard legend in the file. Each workpaper should reference it, and any marks specific to one workpaper should be defined on that workpaper.

Sources

• AICPA, AU-C Section 230, Audit Documentation (documentation of nature, timing and extent, identifying characteristics of items tested, who performed and reviewed the work and when)
• AICPA, AU-C Section 450, Evaluation of Misstatements Identified During the Audit

CORAA prepares ready-to-review audit files for US CPA firms from QuickBooks books; you review and sign. See /us.

AU-C references are to AICPA Professional Standards, paraphrased here; read the standard itself before relying on a requirement. This page is guidance, not professional advice. Report an error