Ican 2023 Audit And Assurance Question 7

Indorise Limited has been in business for about 20 years. The company has divisional offices in three locations. The accounting records are kept mainly at the head office, with back up in an adjacent building to the office. The office is not far from a petrol station. An unfortunate incident happened in a certain year, the petrol station got burnt and most offices in the location were engulfed in fire. The company lost most of the properties in the building, including important accounting records. The company has to make another arrangement for an office location on another street. Fortunately, the end of year audit has just been concluded, but most of the accounting records have not been backed up. The tax office, customers and suppliers are disputing balances and some are even putting up claim for litigation since they know the company may not be able to show proof of the balances against them. A decision was made to approach the external auditors of the company if they can help to retrieve some accounting records from the schedules and other information earlier made available to them. The auditors were happy to assist and some of the problems were resolved. The Chief Accountant expressed his appreciation to the firm.