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:

Neutral Atoms

Atoms with an equal number of protons and electrons, resulting in no overall electric charge.

Uranium-235

An isotope of uranium making up about 0.7% of natural uranium, significant for its ability to undergo fission and its use in nuclear reactors and weapons.

Neutrons

Subatomic particles present in the nucleus of an atom, carrying no electrical charge and having a mass slightly larger than that of protons.

Uranium

A heavy, silvery-white metallic element, radioactive and used as fuel in nuclear reactors and weapons.