During the Course of an Audit Engagement, an Auditor Prepares

question 59

Multiple Choice

During the course of an audit engagement, an auditor prepares and accumulates audit working papers. The audit working papers should then be kept:

• A) until the end of seven years after the date of the audit report.
• B) until the client ceases to exist.
• C) for a period not exceeding three years.
• D) forever.

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Definitions:

Independent Contractors

Individuals or entities that perform work or services for another entity as non-employees, under terms specified in a contract.

Just Cause

A legal standard requiring employers to have fair and genuine reasons for disciplinary actions or termination of employment.

Financial Difficulties

Situations where an individual or entity struggles to meet financial obligations such as debt repayments, often leading to insolvency or bankruptcy.

Just Cause

A legally sufficient reason for a decision or action, especially in the context of employment termination, indicating that the dismissal was fair and reasonable.