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CA Intermediate · Auditing and Ethics · Audit Documentation

CA Mohit, the auditor of Sagar Logistics Ltd, ceased to be the auditor in 2026 and a successor firm was appointed. The client requests him to hand over his complete audit working papers, saying they are the company's property. A partner of the firm wants to refuse, and the successor auditor also asks for access. What is the correct position under the Standards on Auditing and the Code of Ethics?

Audit working papers are the property of the auditor. He may, at his discretion, make portions or extracts available to the client, but he is not obliged to hand over the complete file to the client or the successor auditor, particularly given confidentiality duties.

  1. AWorking papers belong to the client, so the retiring auditor must hand over all of them on request
  2. BWorking papers are the auditor's property; he may at his discretion release portions or extracts, but is not bound to hand over the file to the client or successorCorrect
  3. CWorking papers belong to the successor auditor once the appointment is made, so they must be surrendered
  4. DWorking papers become public documents and must be filed with the Registrar after the audit

Explanation

SA 230 states that audit documentation is the property of the auditor. He may at his discretion make portions or extracts available to the client, provided this does not undermine the independence or validity of the audit. Confidentiality duties also restrict disclosure to the successor. Hence he is not bound to hand over the file.

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