Content of permanent audit file :
(a) Copy of initial appointment letter if the engagement is of recurring nature.
(b) Record of communication with the retiring auditor, if any, before acceptance of the appointment as auditor.
(c) NOC from previous auditor.
(d) Information concerning the legal and organisational structure of the entity.
In the case of a company, this includes the Memorandum and Articles of Association. In the case of a statutory corporation, this includes the Act and Regulations under which the corporation functions, i.e.
(i) In case of partnerships- Partnership deed.
(ii) In case of trusts- Trust deed.
(iii) In case of societies- Certificate of registration/ Rules and Bye-laws.
(e) Organisational structure of the client.
(f) List of governing body including Name, Address and contact details. For instance, the list of directors
in case of a company, list of partners in a partnership and list of trustees in a trust.
(g) Extracts or copies of important legal documents, agreements and minutes relevant to the audit.
(h) A record of the study and evaluation of the internal controls related to the accounting system. This might be in the form of narrative descriptions, questionnaires or flow charts, or some combination thereof.
(i) Copies of audited financial statements for previous years
(j) Analysis of significant ratios and trends
(k) Copies of management letters issued by the auditor, if any.
(l) Notes regarding significant accounting policies.
(m) Significant audit observations of earlier years.
(n) Assessment of risks and risk management
(o) Major policies related to Purchases and Sales
(p) Details of sister concerns
(q) Details of Bankers, Registrars, Lawyers etc
(r) Systems and Data Security policies
(s) Business Continuity Plans