Which One of the Following Is Incorrect with Respect to Working

question 49

Multiple Choice

Which one of the following is incorrect with respect to working papers?

• A) Ordinarily they can only be provided to a third party with the express permission of the auditee.
• B) They are the property of the client and can be accessed by the client at the conclusion of the audit.
• C) They can be viewed by another member of the professional bodies during a peer review.
• D) Information contained in them is legally not viewed as privileged information.

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Definitions:

Adjusting Entries

Adjusting entries are journal entries made in accounting at the end of an accounting period to update the accounts and ensure they reflect the true financial position of the business.

Useful Life

The estimated period over which a tangible or intangible asset is expected to be functional and economic for its intended purpose.

Office Building

A structure designed for administrative or professional activities, often housing offices for various businesses or services.

Accrual-Basis Accounting

An accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.