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CA Intermediate · Auditing and Ethics · Audit Documentation

Ishaan & Co completes the audit of Greenfield Agro Ltd. The client's CFO requests the auditor to hand over the audit working papers, claiming that the company paid the audit fee and is therefore the owner. As per SA 230 and ICAI guidance, what is the correct response?

The auditor should decline to hand over the working papers because they are the auditor's property. At the auditor's discretion, portions or extracts may be shared with the client, but payment of audit fees does not give the company ownership.

  1. AHand over the originals, since fees were paid by the company
  2. BRefuse, because the working papers are the property of the auditor, though portions may be shared at the auditor's discretionCorrect
  3. CHand over only the conclusions, because the law requires this
  4. DHand over the file after the auditor's report, as the Companies Act gives the company a right to it

Explanation

The audit working papers are the property of the auditor. The auditor may, at discretion, make portions or extracts available to the client, provided this does not undermine independence or the validity of the work. Payment of fees does not transfer ownership, and the Companies Act does not give the company a right to the working papers.

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