workpaper-standard

name	workpaper-standard
description	The firm's mandatory workpaper standard: every accounting, tax, payroll, or reconciliation task you perform produces a documented workpaper (purpose, client, period, preparer, date, source docs, procedures, tie-outs/ticks, conclusion, exceptions, references). Use this whenever you finish or document any unit of work, or when a reviewer/partner asks for support. Defines the per-client/per-period filing convention and the workpaper template at templates/workpaper.md. This is the audit-trail backbone every reviewer relies on — no work is 'done' without it.
version	1.0.0
author	RealDeal CPA
license	MIT
platforms	["linux","macos","windows"]
metadata	{"hermes":{"tags":["Workpaper","Documentation","Audit-Trail","Tie-Out","Tick-Marks","Review","Quality-Control","Standards"],"related_skills":["accounting","bank-reconciliation","tax-research","month-end-close","practice-management","self-review-qc"]}}

Workpaper Standard

Every task you perform leaves a workpaper. A workpaper is the support a reviewer uses to re-perform or sign off on your work without re-doing it from scratch. If it isn't documented, it didn't happen. This standard is non-negotiable and applies to bookkeeping, reconciliations, journal entries, close, payroll, and tax work.

When to use

• You completed (or paused) any unit of client work — generate the workpaper now, while the support is fresh.
• A reviewer, partner, or future-you needs to understand WHAT you did, on WHAT data, and WHY the conclusion holds.
• You are documenting an item that goes to the EXCEPTIONS QUEUE (the workpaper carries the open item).

The 11 required elements (never omit one)

1. Purpose — what this workpaper proves, in one sentence.
2. Client — legal name + KarbonCopy client id (from list_clients).
3. Period — exact dates and basis (cash vs accrual). e.g. "FYE 12/31/2025, accrual."
4. Preparer — RealDeal CPA (agent) + the date prepared.
5. Reviewer — left blank for the human partner sign-off (RED gate; never self-sign).
6. Source documents — every input, by name/location: QB report run + parameters, bank statement, invoice #, W-9, portal screenshot, file path. A reviewer must be able to re-pull each one.
7. Procedures performed — the steps you actually executed, in order, including the exact wired tools called (e.g. the QB report tools, qb_journal_entry_create, vr-ledger validate).
8. Tie-outs / ticks — the amounts you agreed and to what. Use the standard tick legend below; every tie must show both sides and the difference (0.00 or the variance).
9. Conclusion — the bottom line. State it plainly and only claim what you proved.
10. Exceptions / open items — anything unresolved, ambiguous, or material → cross-referenced to the EXCEPTIONS QUEUE. Never guess to "close" a workpaper.
11. References (cross-refs) — index code of this WP, links to related WPs, authority cited (IRC §, Treas. Reg., ASC, form #), and the prior-period WP if rolling forward.

Standard tick-mark legend (use consistently)

• TB = agreed to trial balance / general ledger (qb_trial_balance_export / qb_general_ledger)
• B = agreed to bank/credit-card statement
• F = footed / cross-footed (column or row math re-added; recompute, don't eyeball)
• PY = agreed to prior-year workpaper / return
• R = recomputed independently (e.g. depreciation, accrual, payroll tax)
• CF = cross-referenced to another workpaper (give the index)
• X = exception — routed to the EXCEPTIONS QUEUE Define any non-standard tick inline on the workpaper. Every tie shows: amount A, amount B, difference. A difference of 0.00 is a pass; anything else is documented and explained or becomes an exception.

Filing convention (per client / per period)

Store under the client's workpaper tree so a reviewer can navigate by client → period → area:

workpapers/<ClientId>/<Period>/<Area>/<Index>-<slug>.md

• <ClientId> — KarbonCopy id (stable across periods).
• <Period> — FY2025, 2025-Q2, 2025-06 (month), or 2025-941-Q2 for a filing.
• <Area> — cash, ar, ap, payroll, tax, close, equity, recon.
• <Index> — area letter + number: A cash, B AR, C prepaids/other assets, E AP/accruals, N equity, P P&L/revenue, PR payroll, TX tax. e.g. A-1, PR-3.
• <slug> — short kebab description. Example: workpapers/KC-00417/2025-06/recon/A-1-operating-bank-recon.md. Use the template at templates/workpaper.md — copy it, don't free-form. Keep prior-period WPs immutable; roll forward into a new file, never overwrite.

Procedure

1. Identify the client (list_clients/list_contacts) and confirm period + basis before touching numbers.
2. Copy templates/workpaper.md to the filing path above; fill the header (elements 1-5).
3. Capture source docs as you go (element 6): record each the QB report tools you ran with its date range and basis; note statement dates, document numbers, file paths, and any desktop screenshot (the screenshot tool) of a portal you took. Always qb_session_status + qb_company_info first and record which company file you were in.
4. Document procedures (element 7) step-by-step with the exact tools and parameters used — a reviewer should be able to re-run them.
5. Tie out (element 8): agree every material balance to its source, foot the schedules, recompute estimates. Record both sides and the difference with a tick.
6. Conclude (element 9): write the bottom line; claim only what the ties support.
7. Exceptions (element 10): list open/ambiguous/material items, cross-ref to the EXCEPTIONS QUEUE; do not resolve by assumption.
8. Cross-reference (element 11) related WPs, prior period, and authority.
9. Self-review against self-review-qc before handoff — re-perform key ties, confirm every element is present, and clear or escalate exceptions; QC happens before the partner RED gate, not after.
10. Leave the Reviewer line blank — sign-off is a human RED gate.

Edge cases / pitfalls a 15-year CPA knows cold

• A "reconciled" status with no listed reconciling items is a red flag — show the outstanding/unmatched items or it isn't a recon.
• Tie to the source, not to another QB report that shares the same error; a self-referential tie proves nothing.
• Re-run, don't reuse, a QB report whose date range or basis differs from the period — stale parameters silently break ties.
• Materiality is judgment: small but unusual (round-dollar transfers, related-party, period-end) items still go to exceptions even under threshold.
• Estimates (depreciation, accruals, allowances) must be recomputed (R), never just agreed to the booked number.
• Round-tripping a number you don't understand to make a tie hit 0.00 is the cardinal sin — document the variance instead.
• Workpapers may be discoverable; write only supportable, professional statements (Circular 230 conduct).
• Never delete a prior workpaper; supersede with a new index and CF the old one.

Re-perform manifest (a workpaper that re-executes itself)

Beyond prose + tick-marks, every numeric workpaper carries a machine-executable manifest: the exact tool calls and parameters that produced each tie-out, plus the SHA-256 hash of every source document read (via provenance-and-evidence / record_read). Embed it as a fenced block:

reperform:
  as_of: <date>
  ties:
    - name: A-1-bank-tie
      tool: qb_general_ledger        # the exact wired tool + args used
      args: { account: "Operating Checking", through: <date> }
      expected: 48210.55
      verified_by: vr-verify.check_ties
  sources:
    - { doc: "May bank statement.pdf", sha256: <hash> }

This makes the workpaper re-performable: anyone (you, the reviewing partner, a future auditor) can re-run the manifest against the current books and diff — "3 of 11 ties still hold; A-1 now off $412 because 2 transactions were edited post-close on 6/14." Run a reperform of prior signed workpapers on a cadence (tamper-watch): if a locked-period number silently changed underneath a completed close, that is an immediate EXCEPTIONS-QUEUE item. Numbers in the manifest are confirmed by the deliverable-verification spine before the workpaper is called done.

Required output

• Bottom-line summary — one or two lines: what was done and the conclusion (e.g. "A-1: operating bank reconciled to 6/30/25 statement; $0.00 difference; 2 outstanding checks listed").
• EXCEPTIONS QUEUE — bulleted open/material/ambiguous items for the partner, each cross-referenced to its WP index. Empty is fine; "none" must be stated explicitly.
• WORKPAPER note — the saved file path under the filing convention, with index, preparer, and date.

Approval gate

GREEN (autonomous): preparing, indexing, filing, tying out, and writing workpapers — do this freely. RED: the Reviewer sign-off line, and any underlying action the WP supports that posts material/unusual JEs, sends client comms, moves money, or submits a tax/payroll filing — prepare and document, then hand to the human partner to authorize. Never self-sign the reviewer line.