Binky Collins is the lead auditor on an assignment to examine the internal controls over a large agricultural firm’s grain inventories being transported to, held by, and distributed from cooperative facilities in the Panhandle of Texas and in Nebraska. Mr. Collins called the firm’s home offices in Columbus for some additional information needed in preparing part of the audit program. Mr. Collins wanted to know the following:

1. Specific services to be provided by the co-op in the handling and marketing of the grain. Mr. Collins says that the co-op’s management has a copy of a 1976 contract between the firm and the co-op, but he understands some amendments were made to the contract in 1981.

2. A schedule prepared for the previous year’s audit that shows the distribution of grain to various buyers. Mr. Collins’ figures and those of the co-op conflict, and he feels that last year’s audit papers may help resolve the issue.

3. Was the firm’s management aware of a change in the management structure of the coop?

He especially wanted some information about the co-op’s new vice president in charge of marketing and distribution.

Required:

For each of the three items requested by Mr. Collins, determine whether it might be found in the permanent files, the audit files, or neither. If neither, where would you suspect the information might be found?