Lulu,an accountant,conducts an audit of Microstuff Toys,Inc.After the conclu-sion of the audit,the working papers created in preparing the audit must be

Question

Quizplus · Accepted Answer

According to generally accepted auditing standards, working papers should be maintained for seven years in case they are needed for reference or a subsequent audit. This is to provide documentation and support for the auditor's opinion and findings. Option A is not appropriate as working papers are important records, and disposal needs to be approved and documented properly. Option B is not entirely correct as the review by the Public Company Accounting Oversight Board is not the only reason for maintaining the working papers. Option D is also not applicable here as there is no requirement to retain the working papers forever.

Lulu,an Accountant,conducts an Audit of Microstuff Toys,Inc