The Permanent File of the Audit Documentation for an Engagement

question 786

Multiple Choice

The permanent file of the audit documentation for an engagement generally would not include:

• A) Bond indenture agreements.
• B) Lease agreements.
• C) Working trial balance.
• D) Flowchart of internal control.

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Definitions:

Notes Payable

A written agreement or promissory note to pay a certain sum of money, usually with interest, by a specific date.

Salaries Expense

Represents the total amount of gross wages paid by a business to its employees over a specific period, typically before any deductions.

Chronological Order

The arrangement of events, documents, or records in the sequence of their occurrence.

Prepaid Insurance

An asset account representing insurance payments made in advance of the coverage period, recognized as an expense over time.