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CS Professional · Compliance Management, Audit and Due Diligence · Audit Process and Documentation

A firm of chartered accountants completes the audit of Ganga Steels Ltd and signs the report on 20 May 2026. The firm asks what minimum period it must retain the engagement documentation under SA 230 as adopted in India, which differs from the international standard because of the Chartered Accountants Act, 1949 and its regulations. What is the minimum retention period?

SA 230 as adopted in India prescribes a minimum retention period of seven years for engagement documentation, because the Chartered Accountants Act, 1949 and its regulations prescribe seven years for working papers. The international standard's five-year period does not apply in India.

  1. AThree years
  2. BFive years
  3. CSeven yearsCorrect
  4. DTen years

Explanation

The material modifications note that ISA 230 prescribes five years, but SA 230 prescribes seven years as the minimum retention period for engagement documentation. This is because the Chartered Accountants Act, 1949 and regulations prescribe seven years for working papers. Five years is the ISA figure and is the distractor.

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