What are the contents of permanent audit file and current audit file?
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May 14, 2022/ Steven Bragg
A permanent file is a set of records that serves as an ongoing reference for an organization's external auditors. The information in the file is intended to be accessed repeatedly in successive audits to assist the audit team in the conduct of their tasks. The file may contain the following documents: Accounting policies Articles of incorporation Bylaws Chart of accounts Director list History of the client organization Internal controls documentation Organization chart Prior year's audit report Content of permanent audit file : (a) Copy of initial appointment letter if the engagement is of recurring nature. (b) Record of communication with the retiring auditor, if any, before acceptance of the appointment as auditor. (c) NOC from previous auditor. (d) Information concerning the legal and organisational structure of the entity. In the case of a company, this includes the Memorandum and
Articles of Association. In the case of a statutory corporation, this includes the Act and Regulations under which the corporation functions, i.e. (i) In case of partnerships- Partnership deed. (ii) In case of trusts- Trust deed. (iii) In case of societies- Certificate of registration/ Rules and Bye-laws. (e) Organisational structure of the client. (f) List of governing body including Name, Address and contact details. For instance, the list of directors (g) Extracts or copies of important legal documents, agreements and minutes relevant to the audit. (h) A record of the study and evaluation of the internal controls related to the accounting system. This might be in the form of narrative descriptions, questionnaires or flow charts, or some combination thereof. (i) Copies of audited financial statements for previous years (j) Analysis of significant ratios and trends (k) Copies of management letters issued by the auditor, if any. (l) Notes regarding significant accounting policies. (m) Significant audit observations of earlier years. (n) Assessment of risks and risk management (o) Major policies related to Purchases and Sales (p) Details of sister concerns (q) Details of Bankers, Registrars, Lawyers etc (r) Systems and Data Security policies (s) Business Continuity Plans In the case of recurring audits, some working paper files may be classified as permanent audit files which are updated currently with information of continuing importance to succeeding audit, as distinct from current audit files which contain information relating primarily to the audit of a single period. A permanent audit file normally includes :
The current file normally includes :
What are the contents of the permanent audit file?The file may contain the following documents:. Accounting policies.. Articles of incorporation.. Bylaws.. Chart of accounts.. Director list.. History of the client organization.. Internal controls documentation.. Organization chart.. What are the matters included in the current audit file and permanent audit file?The current audit file contains documents and support for the current year. It includes leads, account balance, supports, evidence, and any other documents prepared during client field or desk audits. On the other hand, permanent audit files contain documents that remain relevant for future audits as well.
What is current file and permanent file are together known as?Current file and Permanent file are together known as. a) Audit Plan.
What is meant by current audit file?Current audit file has documents which are important only for current audit period unlike permanent audit file which have documents which are important from period to period like memorandum, articles , etc.
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