Provide an original and substantive response to the questions posed in your Jour

Question

Provide an original and substantive response to the questions posed in your Journal in a minimum of 200 words.

You read about how evidence is the heart of the audit. Auditors base their opinions on the quality of evidence to confirm what the client states to be true. If evidence was weak or incomplete, it is hard for auditors to gain assurance on the client’s claims. Suppose a lot of your client’s paper documentation from early in the fiscal year was destroyed in a fire.

What measures would you take to gather evidence from that time?
Would you just give them a “pass” from that time period and audit the rest of the year instead? Why or why not?
Would you ask the client to reproduce the data in some way?

Explanation / Answer

Answer:-

No, we cannot pass from that time period and audit the rest of the year instead. Audit happens full year and not for partial years. Therefore it is important from auditors point of view to have disclosure to all materaila information to conduct the audit successfully.

And as well for the company otherwise auditor's would not give ratings to the firm operational position. Since there were lot of paper documentation which got destroyed due to fire. In order to complete the audit, Auditor should physical verification in the client office and factory.

We should ask even client to reproduce the filings and bills to facilitate the auditor conduct audit and also have the physical evidences. As client must be maintaing the data also,which can be used by auditor. And lastly we should also start maintaing data online as there are several softwares available in the market for maintainig the documents online. And this also helps in a situation like fire which happened this time and our data remains protected.

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