Important considerations in documentation and record retention.

CAMICO has long advocated that accounting firms establish a written record retention policy that is applied consistently to all engagements. When developing a record retention and destruction policy, the firm should consider the level of service it provides as well as what is best for its clients. For example:

** Should different record retention periods be allocated for different types of clients and different scopes of service? A policy for tax services versus one for audit services may depend on statutory requirements as well as on what works best for the CPA firm and the client.

** Should a shorter record retention period be allocated for former clients (at least seven years for audit services) and a longer one for current clients? Incidentally, the likelihood of having a claim filed against a CPA firm is not affected by whether the claimant is a current or former client. The firm will also want to consider the potential impact of its record retention policy on storage costs and space limitations.

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