As audit work is performed and the auditor amasses client information and documentation that apply to the current year's audit, ________.
A)this should be placed in the current file
B)this should be retained in the permanent file
C)copies of all information should be placed in both the current and permanent files
D)it should be destroyed after seven days to protect client confidentiality

Question

Quizplus · Accepted Answer

The information and documentation gathered in the current year's audit should be placed in the current file. This file contains all the information related to the current year's audit and is used for reference in future audits. The permanent file, on the other hand, contains information that is not relevant to the current year's audit but is important for future audits, such as articles of incorporation, bylaws, and previous year's financial statements.Copying all information to both files is unnecessary and can be a waste of resources. Destroying the information after seven days would be inappropriate and could lead to legal and ethical issues.

As Audit Work Is Performed and the Auditor Amasses Client