Which One of the Following Is Incorrect with Respect to Working

question 89

Multiple Choice

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

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

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Definitions:

Static Budget

A budget set for a specific level of activity that does not change, even if actual levels of activity change.

Total Overhead Cost

The comprehensive sum of all indirect costs involved in operating a business, not directly tied to a specific product or service.

Planning Budget

A budget prepared in advance of a specific budget period, serving as a financial plan for achieving strategic goals.

Other Expenses

Costs that do not directly relate to the primary business activities, such as interest payments or losses from asset sales.