The responses to the inquiries that auditors have made of management throughout the course of the audit _______.
A)are recorded in the client's permanent file
B)are confidential and not shared with senior management
C)are documented in the auditor's working papers
D)are sent to the prior auditor to be checked for prior year consistency

Question

Quizplus · Accepted Answer

The inquiries and responses made between auditors and management are documented in the auditor's working papers as part of the audit process. This documentation serves as evidence of the auditor's due diligence in gathering information and assessing the risk of material misstatement. The client's permanent file may contain some of this information, but it is not the primary location for documenting audit communications. The information is not confidential and may be shared with senior management, but typically the auditor will communicate any significant findings or issues in a separate management letter or report. The prior auditor does not need to review the inquiries and responses, as they are specific to the current year's audit.

The Responses to the Inquiries That Auditors Have Made of Management