What is a Permanent File?

A permanent file is a set of records that serves as an ongoing reference for an organization's external auditors. The information in the file is intended to be accessed repeatedly in successive audits to assist the audit team in the conduct of their tasks. The file may contain the following documents:

Accounting policies
Articles of incorporation
Bylaws
Chart of accounts
Director list
History of the client organization
Internal controls documentation
Organization chart
Prior year's audit report

By maintaining these items in a permanent file, incoming auditors have a ready source of relevant information pertaining to a client. In order to keep this information relevant, the auditors will need to update the file whenever there is a change in the documentation, such as new accounting policies, articles of incorporation, and bylaws.