An auditor is finalizing the audit documentation for a nonissuer client. The audit report release date was March 15. According to AU-C 230, by what date must the auditor complete the assembly of the final audit file, and how long must it be retained?

Answer options:

Assembly by April 29 (45 days); Retention for 7 years.

Assembly by May 14 (60 days); Retention for 5 years.

Assembly by May 14 (60 days); Retention for 7 years.

Assembly by March 15 (0 days); Retention for 5 years.

How to approach this question

Distinguish between AICPA (Nonissuer) and PCAOB (Issuer) documentation rules. AICPA: 60 days / 5 years. PCAOB: 45 days / 7 years.

Full Answer

B.Assembly by May 14 (60 days); Retention for 5 years.✓ Correct

Assembly by May 14 (60 days); Retention for 5 years.

Under AU-C 230 (Nonissuers), the final audit file must be assembled within 60 days of the report release date and retained for at least 5 years. (Contrast with PCAOB: 45 days and 7 years).

Common mistakes

Mixing up AICPA and PCAOB timelines.

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