The Permanent Files Included as Part of Audit Documentation Do

question 27

Multiple Choice

The permanent files included as part of audit documentation do not normally include

• A) a copy of the current and prior years' audit programs.
• B) copies of articles of incorporation, bylaws and contracts.
• C) information related to the understanding of internal control.
• D) results of analytical procedures from prior years.

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Definitions:

Operating Lease

A lease agreement allowing the use of an asset without ownership, typically with shorter terms than a finance lease.

Asset-Based Loan

An asset-based loan is a type of lending, often secured by a company's assets, where the loan amount is based on a percentage of the value of those assets.

Operating Lease

A contract that allows for the use of an asset but does not convey ownership rights of the asset to the lessee.

Risk Of Obsolescence

The risk that a product or service becomes outdated and undesired due to new technologies or changes in consumer preferences.