The auditor's permanent working paper file should not normally, include__________?
Correct answer: A. Extracts from client's bank statements
- A. Extracts from client's bank statements
- B. Past year's financial statements
- C. Attorney's letters
- D. Debt agreements
Explanation
The permanent file contains information of continuing relevance, such as prior financial statements, legal correspondence and long-term debt agreements. A bank statement normally supports a particular period’s audit and belongs in the current file.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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More Auditing questions
Which of the following factors would least likely affect the quantity and content of an auditor's working papers
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