CA Intermediate · Auditing and Ethics · Audit Documentation

CA Nikhil resigned as auditor of Gomti Foods Ltd mid-year. Later, the successor auditor's request to see his working papers is received, and separately the company's management demands them as the company's property. Which statement is correct regarding ownership and access under the ICAI Code of Ethics and SA 230?

Audit working papers are the property of the auditor. He may choose to give the client portions or extracts if that does not weaken the validity of the work or his independence, and he must keep confidentiality. Neither the client nor the successor auditor acquires automatic ownership.

1. AAudit documentation is the property of the auditor; he may at his discretion release portions or extracts to the client provided this does not undermine the validity of the work or independence, and confidentiality is respectedCorrect
2. BAudit documentation is the client's property, so management may demand the entire file at any time
3. CAudit documentation is the property of ICAI and must be handed over to it on request without any other consideration
4. DAudit documentation becomes the property of the successor auditor once he is appointed