For audit firms in Johor Bahru, the quality management of the firm may include their efficiency of filing audit documents. Classifying current audit files and permanent audit files can be crucial as this ease the process of auditing since the auditors could find the documents they need quickly.
Current Audit Files
A firm will keep all information associated with current year auditing in the files called current audit files. These files consist of the current year general ledger, financial statements, supporting documents, management accounts, as well as the documents about audit program, audit planning, and the current year internal control (Also see What is an Internal Audit?) of the company.
Besides, current audit files may include information such as crucial audit findings, current year adjustments or the proposals of the adjustments, and some essential matters which need the attention of the partner. These files should also contain audit working papers of the current year. The working papers include audit sampling, risks assessment, internal control documents, as well as the analytical audit review.
Permanent Audit Files
The auditors may use this type of files to keep the information which they would use continuously. The information consists of the board meeting minutes, long-term agreement or contract, as well as the engagement letter.
The auditors need to keep the events or documents according to their nature and categorisation. They should also ensure that all the documents and information which they acquire from their customers are safe and will never leak to the individuals or parties that should not access the data.
Permanent audit files are not the same as the current audit files as the latter only consists of documents associated with the current year audit. However, the permanent audit files keep records or information that the auditors may use in the audit periods (Also see Steps of a Financial Statement Audit) in the future.
Typically, the permanent audit files should include information such as the details about the history of the customer’s company, as well as the management letters, control questionnaires and analytical review of the previous years. Other documents may consist of the board meeting minutes, the notes on accounting systems, new customer questionnaires, the engagement letters, as well as other legal documents which may include sales agreements, prospectuses and so on.