What should the Auditor do in the situation mentioned below?
Books of the assessee have been seized by the Income Tax officials. What is provided to the Auditor is only the xerox copy of Books of Accounts. Should the Auditor go for a Qualified Audit Report or is it enough that he mentions the matter in Emphasis of Matter Paragraph?
He should give a disclaimer of opinion if he is not able to gather sufficient appropriate audit evidence. Empahsis of Matter is not possible in such situations.
2mrow is ma Audit paper so i remember dis 
might b helpful 4 u.....
The degree of reliance vl b increased if d xerox copies of the accounts books & vouchers are certified to be TRUE copies by IT department & if tax authorities refuse to certify, den d auditor should get it certifiy from d management of the co.
The auditor should obtain evidence using procedure like confirmation of balance frm 3rd parties, inspection of tanglible assets, etc.
In any case , the auditor has 2 satisfy himeself dat he has obtained sufficient & appropriate audit evidence 2 support the financial statments figures.
The auditor should bring dis fact 2 d attention of the shareholders & modified his report appropriately.
In case the auditor failed to eastablish the realibility of evidence available , he would be required 2 a desclaimer of opinion.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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