The Controller Who Had Been with Bianca Limited for Six

question 32

Essay

The controller who had been with Bianca Limited for six years was fired last month,allegedly for pocketing cash.Unfortunately,there was a fire in the accounting department the week before he was fired,which destroyed the accounting records,including the computer equipment and current backup disks.The only records available for the current year is a copy of the computer system that is a month old.There are also disks for the year-ends going back three years.These were at the president's home,the place where the company kept archival records.
Required:
Explain how this situation might affect the audit process.

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Definitions:

Independent Variable

In experimental research, the variable that is manipulated by the researcher to observe its effects on the dependent variable.

Poor Reliability

Describes a measure or test that fails to produce consistent and stable results over time.

Self-Esteem

An individual’s subjective evaluation of their own worth or the attitude toward oneself ranging from positivity to negativity.

Scores

Numerical expressions representing a measurement or assessment result, often used in the context of tests or evaluations.