BU547 Lecture Notes - Lecture 15: Audit Risk, Control Risks, Contingent Liability
Document Summary
Permanent files contain any ongoing legal and planning information about the client, such as copies of important legal documents, details on the accounting policies used, descriptions of the systems of internal controls, and financial statement analyses from previous years. All information about the client that is of continuing interest from year to year is filed in the permanent file. Individually, these entries do not warrant adjustment to the financial statements. They are listed and it is later determined whether, in total, they are material. These working papers are owned by the auditor and are generally not shown to anyone without the permission of the client; exceptions include regulatory authorities and members of the profession conducting a peer review of the auditor"s practice. Working papers contain sensitive information about the client"s business and must be protected at all times. As more of this information is held in electronic form, it becomes important that working papers be stored on secure systems.
