Permanent Audit Files (PAFs)
Permanent Audit Files (PAFs) are documents that contain information that auditors gather
over a number of years during the course of their audits. They are called "permanent" because
they contain information that is relevant for future audits and can be used as a reference by
auditors.
PAFs typically include important documents such as financial statements, previous audit
reports, and other documents that relate to the client's financial reporting, such as internal
controls and policies. The purpose of maintaining PAFs is to provide continuity and
consistency in audits over time.
PAFs can also be used to document the auditor's understanding of the client's business and
industry, as well as significant transactions and events that have occurred over time. This
information can be helpful in planning future audits and identifying areas of risk.
PAFs are usually maintained by the audit firm, and are updated after each audit engagement.
They are confidential and can only be accessed by authorized personnel within the firm. In
some cases, regulators may also have access to PAFs during their inspections of audit firms.
In summary, Permanent Audit Files are an important tool for auditors to maintain a history of
their client's financial reporting and to help ensure the continuity and consistency of their
audit work over time.