CA Intermediate · Auditing and Ethics · Audit Documentation
Auditor CA Nisha has completed the audit of Gupta Retail Ltd and filed her working papers. The company's new CFO asks for the complete working papers file to use in an internal review. What is the correct position?
Audit working papers are the property of the auditor, who may use discretion to give the client portions or extracts, provided that doing so does not undermine the independence of the auditor or the validity of the audit work. The whole file need not be surrendered.
- AThe working papers belong to the auditor, who may at her discretion provide portions or extracts if this does not undermine the independence or validity of the auditCorrect
- BThe working papers belong to the company, so she must hand over the entire file
- CThe working papers belong to ICAI, which alone can release them
- DThe working papers become public records once the report is signed
Explanation
Audit working papers are the property of the auditor. Under SA 230 and ICAI guidance, the auditor may at her discretion make portions or extracts available to the client, provided this does not undermine the independence or validity of the audit work. The entire file need not be handed over, and neither ICAI nor the public owns them.
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