During the course of an audit engagement, an auditor prepares and accumulates audit working papers.The audit working papers should then be kept:
A) for a period not exceeding three years.
B) forever.
C) until the client ceases to exist.
D) until the end of seven years after the date of the audit report.

Question

Quizplus · Accepted Answer

Audit working papers should be retained for a period of seven years after the date of the audit report. This is in accordance with the generally accepted auditing standards (GAAS) and is also required by various regulatory bodies such as the Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB). Keeping the working papers for this amount of time ensures that they can be referenced in case of legal or regulatory issues that may arise.

During the Course of an Audit Engagement, an Auditor Prepares