Permanent Files Contain All the Data

question 91

Multiple Choice

Permanent files contain all the data:

• A) of a historical or continuing nature about the client.
• B) of a historical or continuing nature pertinent to the current audit.
• C) about the current audit and financial statements.
• D) about the most recent audits.

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Definitions:

Withheld FICA Taxes

Taxes deducted from employees' paychecks to fund Social Security and Medicare, which employers also match.

Net Pay

The amount of money an employee takes home after deductions such as taxes and retirement contributions have been subtracted from their gross salary.

Voluntary Deductions

These are payroll deductions that an employee chooses to have withheld from their paycheck, such as for retirement plans, health insurance, or union dues.

Health Insurance

Health insurance is a form of insurance coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.