05 January 2014
The auditor of a limited comapany has given a clean report on the financial statement on the basis of xerox copies of the books of accounts,vouchers and other records which were taken away by the income tax department in search u/s 132 of I.T act. plz comment..???
05 January 2014
The reliability of evidence is influenced by its source and by its nature, and is dependent on the individual circumstances under which it is obtained including the controls over its preparation and maintenance where relevant.
Obtaining audit evidence from different sources or of a different nature may indicate that an individual item of audit evidence is not reliable, such as when audit evidence obtained from one source is inconsistent with that obtained from another. SA 230 includes a specific documentation requirement if the auditor identified information that is inconsistent with the auditor’s final conclusion regarding a significant matter.
If by using professional judgment Auditor believe there is no material mis-statement and Xerox copies of voucher and other record is not inconsistence with other external records accordingly audit risk is acceptable then only he may provide unqualified opinion.
05 January 2014
The reliability of evidence is guided by facts of the case,circumstance under which such evidence was found/discovered & other facts/factors that gives indication of trueness of such evidence. However one need to establish the reliability of evidence(i.e. Onus of proving).
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