Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

What is the required minimum retention period for audit documentation related to nonissuers?

1. One year

2. Seven years

3. Three years

4. Five years

The correct answer is: Five years

The required minimum retention period for audit documentation related to nonissuers is five years. According to the standards set by the American Institute of Certified Public Accountants (AICPA), specifically the Statement on Auditing Standards (SAS) No. 103, auditors are required to maintain audit documentation for a specified period to ensure that there is a proper record of the audit work performed. This requirement helps to support the auditor's conclusions and promotes accountability in the audit process. Maintaining this documentation for five years allows for sufficient time to address any inquiries that may arise about the audit work, as well as to comply with regulatory requirements. While other options suggest shorter retention periods, they do not satisfy the standard set by the AICPA, which emphasizes the importance of retaining audit documentation for a duration long enough to maintain a comprehensive record of the audit process and findings.