Audit documentation that shows the detailed evidence and procedures regarding the balance in the accumulated depreciation account for the year under audit will be found in the
a. planning memorandum in the current file
b. administrative audit documentation in the current file
c. permanent file audit documentation
d. current file audit documentation
Answer: d. current file audit documentation
With respect to the concept of materiality, which one of the following statements is correct?
a. materiality is a matter or professional judgment
b. materiality depends on the nature of the transaction rather than the dollar amount of the transaction
c. materiality depends on the dollar amount of an item relative to other items in the financial statements
d. materiality is determined by reference to AICPA guidelines
Answer: a. materiality is a matter or professional judgment
An auditor's permanent file audit documentation most likely will contain
a. excerpts of the corporate charter and bylaws
b. the most recent engagement letter
c. memoranda of conference with management
d. internal control analysis for the current year
Answer: a. excerpts of the corporate charter and bylaws
