A client's primary accounting methodologies and significant accounting policies ________.
A)should be stored in the current file
B)should be stored in the permanent file
C)should be re-examined by the auditor once the audit report has been published
D)is confidential, and should not be shared with the auditor

Question

Quizplus · Accepted Answer

A client's primary accounting methodologies and significant accounting policies should be stored in the permanent file, as they provide key information for future audits and evaluations. The current file only contains temporary documentation related to the current year's audit. The auditor should review this information during the audit process to ensure that the client is following generally accepted accounting principles (GAAP) and that the financial statements are fairly presented. As this information is important to the auditor's evaluation of the financial statements, it is not confidential and should be made available to the auditor.

A Client's Primary Accounting Methodologies and Significant Accounting Policies ________