What is the difference between the permanent and current audit file?
The current audit file is used to store documentation that is applicable to the current year audit only. If the document will likely be needed in future audits, then the document should be placed in the permanent audit file.
The visual below illustrates the items that are commonly stored in the current file vs the permanent file.
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What is the current audit file?
The audit team will need to maintain a current file and a permanent file. The current audit file is used to maintain audit documentation specific to the current year and would not necessarily be useful in future audits. This would include audit reports, financial statements, representation letters, etc.
What is the permanent audit file?
The engagement team should maintain a current file and permanent file for audit documentation. The permanent audit file would hold items that are important for this current year and future audits. Examples include any incorporation documents, multi-year contracts, leases, pension plans, etc.