Q. Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?
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(A)
The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation
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(B)
The safe custody of working papers is the responsibility of client, if kept at his premises
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(C)
The working papers must be retained by an audit firm for a period of 10 years
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(D)
Successor auditors may have access to working papers of the predecessor auditors. The approval of client is not required.
✅ Correct Answer: (A)
The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation