# Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor? with Answer - Auditing Mcqs | TestPrep

> Solved MCQ: Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor? Correct Answer: A. The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?

Direct Answer & Quick Reference

The correct option is **A. The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation**.

A. The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation **(Correct Answer)**

B. The safe custody of working papers is the responsibility of client, if kept at his premises

C. The working papers must be retained by an audit firm for a period of 10 years

D. Successor auditors may have access to working papers of the predecessor auditors. The approval of client is not required.

✨ Explain with AI

Verified Key: A. The working papers may be obtained by third parties when they appear to be relevant to issues raised in litigation
Solved by 5,599+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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