Working papers that record the procedures used by the auditor to gather evidence should be:
A) Considered the primary support for the financial statements being examined.
B) Viewed as the connecting link between the books of account and the financial statements.
C) Designed to meet the circumstances of the particular engagement.
D) Destroyed when the audited entity ceases to be a client.

Question

Quizplus · Accepted Answer

Working papers are important documentation of the audit process and should be designed to meet the specific circumstances of the engagement. They should not be destroyed when the engagement is over but should be retained for a certain period of time as required by professional standards and/or legal requirements. However, they are not considered the primary support for the financial statements being examined, nor are they the connecting link between the books of account and the financial statements.

Working Papers That Record the Procedures Used by the Auditor