Your Ask Joey ™ Answer

How long does the audit team need to retain documentation

Once the auditors have completed their workpapers for a given client, they must retain that audit documentation for a certain period of time. The retention requirements of audit documentation are 5 years for nonissuers and 7 years for issuers. The start date is based on the report release date. The report release date is when the financial statements, which includes the audit report, are released to the general public.

When you finally reach the conclusion of the audit and send the audit report to your client, you’ll probably take a big sigh of relief! However, wrapping up the audit can be a giant pain in the ass. Wrapping up the audit is extremely important, so it is critical that the audit team performs this step correctly.

Back To All Questions

You might also be interested in...

  • Three Reasons to Become an Accountant

    If you’re someone who is intrigued by numbers, enjoys problem-solving and wants to help others, then accounting might be the perfect career for you. While some people may be put off by its unalluring reputation, accounting is an excellent career choice that has many benefits. In this article, we look at three of the reasons...

  • Qualified Retirement Planning: Tax Advantages & Disadvantages

    Home Advantages and Disadvantages of Tax-Free and Deferred-Tax Retirement Plans What are “qualified retirement plans” and how can they be effective for tax planning? Well, there are plenty of tax savings advantages to individuals contributing to tax-free retirement accounts, as well as tax-deferred retirement accounts. However, this doesn’t necessarily mean that there are no disadvantages...

  • CPA Evolution Survival Guide

    Download Your eBook by selecting the download icon in the top right-hand corner