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
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
B. The safe custody of working papers is the responsibility of client, if kept at his premises
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C
C. The working papers must be retained by an audit firm for a period of 10 years
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D
D. Successor auditors may have access to working papers of the predecessor auditors. the approval of client is not required.
Correct Answer:
A. A. The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation
