The permanent audit file would usually include the

3) The permanent audit file would usually include the following:
A) client's working trial balance
B) summary of the risk assessment procedures performed
C) organizational chart of the company's employees
D) summary of the auditors test of controls for the current years audit
Answer: C
Terms: Permanent file
Diff: Challenging
Objective: LO 7-6
AACSB: Reflective thinking skills
4) The permanent files included as part of audit documentation do not normally include:
A
Terms: Permanent files as audit documentation
Diff: Moderate
Objective: LO 7-6
AACSB: Reflective thinking skills
5) When determining sufficient and appropriate audit evidence in order to form an opinion on the
client's financial statements the auditor compiles audit documentation to support the opinion. The
largest portion of audit documentation will include detailed supporting schedules prepared by the
client or the auditor in support of specific accounts on the financial statements. The major types
of supporting schedules include analysis schedules and tests of reasonableness. Discuss those
two schedules and give an example for each schedule.
Diff: Moderate
Objective: LO 7-6
AACSB: Reflective thinking skills
36

6) The basis for preparing financial statements for companies is the general ledger. As soon as
possible the auditor obtains the general ledger accounts of the client and prepares a working trial
balance. Discuss the audit documentation in the current file that relates to the working trial
balance. Include a description of lead and support schedules in your answer.