The permanent file section of the working papers that is retained for each audit client most likely contains:
A)Review notes pertaining to questions and comments regarding the audit work performed.
B)A schedule of time spent on the engagement by each individual auditor.
C)Correspondence with the client's legal counsel concerning pending litigation.
D)Narrative descriptions of the client's accounting procedures and controls.

Question

Quizplus · Accepted Answer

The permanent file section of the working papers retains information that is expected to have a lasting value for the audit client. Narrative descriptions of the client's accounting procedures and controls help the auditors to understand the client's financial reporting system and design an appropriate audit plan. Review notes pertaining to questions and comments about the audit work performed are usually included in the current file section of the working papers. A schedule of time spent on the engagement by each individual auditor is viewed as a current reference and is kept in the current file section. Correspondence with the client's legal counsel regarding pending litigation is not commonly included in the permanent file section.

The Permanent File Section of the Working Papers That Is