The Current File of the Auditor's Working Papers Generally Should

question 9

Multiple Choice

The current file of the auditor's working papers generally should include:

• A) a flowchart of the internal controls.
• B) organisation charts.
• C) a copy of the financial statements.
• D) copies of bond and note indentures.

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Definitions:

Insurance Settlement

The payment made by an insurance company to a policyholder following a claim, intended to cover losses or damages incurred.

Note Balance

The remaining amount owed on a promissory note after payments have been made.

Refinancing

Replacing an old loan with a new loan, typically with better terms, such as a lower interest rate.

Loss Contingency

A potential financial loss to a company that might occur in the future due to past events or transactions, depending on the outcome of uncertain future events.