Which of the following is true of the permanent file?
A)It includes details of key personnel and an organizational chart.
B)In the first year of a continuing audit, it offers no information for future audits.
C)The information included in it is checked and updated at the end of each annual audit.
D)It makes no reference to the client's primary accounting policies and methodologies.

Question

Quizplus · Accepted Answer

The permanent file typically includes details of key personnel and an organizational chart, as well as other important information such as legal documents and historical data. Option B is incorrect since the permanent file provides a basis for future audits. Option C is incorrect because the permanent file is updated throughout the year, not just at the end of the annual audit. Option D is incorrect because the permanent file does include information on the client's primary accounting policies and methodologies.

Which of the Following Is True of the Permanent File