Lesson: Current File and Permanent File

This lesson covers the two types of files that are used to organize engagement documentation: current file and permanent file. The current file contains documents specific to the current year's engagement, such as bank statements, lead sheets, third-party support, control tests, and reconciliations. On the other hand, the permanent file includes items that are relevant for multiple years or the entire duration of the engagement, like internal control flowcharts, new client questionnaires, accounting policies, significant findings, long-term lease and debt agreements, engagement letters, and more. Understanding and properly organizing these files is essential to ensure accurate and efficient record-keeping during an audit or other financial engagements.