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Question

A permanent audit file normally includes ___________________.
  1. evidence that the work performed by assistants was supervised and reviewed
  2. letters representation and confirmation received from the client
  3. significant audit observations of earlier years
  4. all of above

A
all of above
B
evidence that the work performed by assistants was supervised and reviewed
C
letters representation and confirmation received from the client
D
significant audit observations of earlier years
Solution
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Permanent files are relevant for audit from period to period.
Company memorandum, articles, legal contracts, significant audit observations of earlier years, etc are some of the documents available in permanent audit file.
Option (a) and (b) form part of temporary working file of the auditor.

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