The Permanent Section of the Auditor's Working Papers Generally Should

question 30

Multiple Choice

The permanent section of the auditor's working papers generally should include:

• A) a copy of key customer confirmations.
• B) a copy of the engagement letter.
• C) time and expense reports.
• D) names and addresses of all audit staff personnel on the engagement.

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Definitions:

Common Size Balance Sheet

A financial statement that presents all items as percentages of a common base figure, such as total assets, facilitating comparison across time and companies.

Total Assets

The sum of all assets owned by an entity, encompassing both current and non-current assets, and used in determining a company's financial health.

Owners' Equity

The residual interest in the assets of the enterprise after deducting liabilities, representing the owner's claim against the company's resources.

Common Size Financial Statements

Financial statements that present all line items as percentages of a common base figure rather than as absolute numerical figures, facilitating comparison.