Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Under generally accepted auditing standards, working papers prepared by the auditor solely for the engagement need not be returned to the client. The auditor is required to retain these working papers for a period of time after the audit is completed. It is not necessary for the client to have access to these working papers as they are produced solely for the auditor's use in conducting the audit. Therefore, option C is the correct statement. Option A is incorrect because the retention of client-prepared records by the CPA until fees are received constitutes a violation of professional ethics. Option B is incorrect because CPA working papers belong solely to the CPA and the client has no ownership rights to these documents. Option D is incorrect because third parties may be granted access to CPA working papers under certain circumstances, such as in response to a subpoena or a court order.

Which of the Following Statements Is Correct