Asked by Shatha Zaghloul on May 22, 2024
Verified
An accountant should destroy working papers on the completion of an audit to avoid the possibility of having to provide evidence in a suit in which the accountant's competence is challenged.
Working Papers
The documents used and developed by an accountant during an audit, such as notes, computations, and memoranda.
Audit Completion
The process wherein the examination of a company's financial records is concluded and results are compiled.
- Appreciate the importance of maintaining and not destroying working papers and documentation in readiness for potential legal scrutiny.
Verified Answer
JM
Jamous McQueenMay 23, 2024
Final Answer :
False
Explanation :
Accountants should retain working papers for a period of time as they serve as evidence of the audit work performed and the basis for the audit conclusions. Destroying them could be considered unethical and could also violate legal or professional requirements.
Learning Objectives
- Appreciate the importance of maintaining and not destroying working papers and documentation in readiness for potential legal scrutiny.
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