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CS Professional · Compliance Management, Audit and Due Diligence · Audit Principles and Techniques

During sample testing of purchase vouchers at Sagar Foods Ltd, the auditor finds that the file for one selected voucher was lost in a office shift. Under SA 530, how is this situation described?

Lost documentation for a selected item is an example, given in SA 530, of the auditor being unable to apply the designed audit procedures to that item. It is not automatically fraud, and it does not make sampling unusable.

  1. AAn example of the auditor being unable to apply the designed audit procedures to a selected itemCorrect
  2. BAn example of a deviation that must always be treated as fraud
  3. CAn example showing that sampling can no longer be used in the audit
  4. DAn example of evidence that is automatically more reliable because it is internal

Explanation

SA 530 gives lost documentation relating to a selected item as an example of when the auditor is unable to apply the designed audit procedures to that item. It is not stated to be fraud, and it does not prohibit sampling.

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