Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?
ASuccessor auditors may have access to working papers of the predecessor auditors. The approval of client is not required.
BThe safe custody of working papers is the responsibility of client, if kept at his premises
CThe working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation
DThe working papers must be retained by an audit firm for a period of 10 years
Correct answer
C. The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation
Explanation
The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.