[cpa1234]

I am doing a Becker simulation for Audit (A2) where you decide if a document would go in the current or permanent file. I noticed the correct answer for BOD meeting minutes is to put them in the permanent file, but my company actually puts them in the current file.

I figured minutes were just pertaining to that year (therefore should be in the current file), and if any information pertains to previous or future years it would also be noted in those years’ minutes as well….

any thoughts??

[Anonymous]

I think putting them in the current file is right because those minutes are updated for each meeting? Why would they be in a permanent file?

[mad max]

Because decisions such as large capex affect the company over time.

E.g., if company spends 10M to purchase land for a building which they will construct next year, this has implications across multiple years.

[Ana]

when I was an auditor we would put them in the perm file. many decisions they (BOD) make impact the financials for years to come like buying a building, approving multi step software developments, hiring of employees over the next few years, approving loans, etc. it becomes easier to reference than going back to the files year after year.

[Author]

Replies