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In the case of a Recurring audits, all the working papers can be classified into two files namely, Permanent working paper file and Current working paper file.
1. Permanent working paper file: - This file consists of papers, which are relevant for “Review by audit staff PRIOR to the Commencement of audit”. This file is maintained in the auditor’s office and used by the audit staff for reference purpose. The contents of permanent working papers file are as follows.
a. Constitutional Documents of the entity like MOA, AOA, partnership deed and Trust deed.
b. Copies of important Statutory Provisions applicable to the entity.
c. Copies of the agreement with Foreign Collaboration if any.
d. List of officers, their powers and duties.
e. List of accounting policies and procedures followed by the management in preparation of financial statements.
f. Pronouncement issued by ICAI for certain industries to which the entity belongs.
g. Major frauds and errors detected in the earlier audits.

2. Current working paper file: - The file consist of the papers (information) required by the audit staff while performing current period audit, the contents are as follows:
a. Advance planning memorandum an Audit Programme.
b. Copy of a resolution relating to appointment of auditor, Letter of Appointment, Letter of Engagement etc.
c. Extracts of Minutes of board of directors and shareholders meeting.
d. Weakness in the internal control found during the review.
e. Branch accounts and branch auditors report.
f. Confirmation letter from Debtors and Creditors.
g. Draft financial statements of current period.

OWNERSHIP of Working Papers: -
Working papers are the Property of the Auditor. These are to be kept in the auditor’s office for future references. There is not duty on the part of the auditor to return such working papers to the client. On request of the client, he may provide the extracts of the working papers.
One of the basics principles governing an audit is Confidentiality; hence the auditor should maintain the information in the working papers in confidential. He can disclose such information only when required by Law (or) with the Prior Approval of the client.

Advantages (or) Importance of working papers: -
1. It provides guidance to the audit staff with regard to the manner of carrying the audit work.
2. The auditor is able to fix responsibility on the Audit Staff basing on the signatures done on the working papers.
3. It can be used by the auditor as a Defence in the court of law when charged with Duty of Negligence.
4. It acts as a Guide for Future Planning.

Conclusion: -
As far as practicable the auditor is required to maintain working papers for all significant matters. The auditor should retain this for a sufficient period of time, which will meet the needs of his practice and satisfy any legal or professional requirement.