What Are Permanent Files?

A permanent file is a series of files containing important information that has remained relatively unchanged. The files serve as an ongoing reference for the organization’s external auditors. The information in these files is intended to be accessed repeatedly in successive audits to assist the audit team in carrying out their tasks.

Purpose of Permanent Files

  • As a reference that will be used for inspection in the coming years.
  • Provide a summary of client policies and organizations for employees / staff for the first time handling auditing financial statements .
  • Avoid repetition of the same working paper making from year to year.

Examples of Permanent Files

Some examples of permanent files that are common in companies are:

  • A copy of company documents that have not changed, such as a certificate of incorporation, articles of association, to long-term contracts.
  • Information relating to internal control assessments such as organizational charts, document flow charts, and so on.
  • Ratio analysis from previous years about estimates (accounts) which for the auditor is important for a fairly long period of time, such as long-term loan estimates, owner’s capital, goodwill .
  • Audit analytic test results from examinations of previous years.


Leave a Comment