Difficulties in Obtaining Evidence


Following difficulties are faced by an auditor in obtaining audit evidence.
1. Inadequate records maintained.
2. Existence of mass of data.
3. Client’s assistance facility not available.
4. International concealment and falsification
5. Accounting procedures problems

1.         Inadequate records maintained: An audit or expresses his opinion on the financial statement prepared by the client from the books and records maintained by it. The opinion is to be the truth and fairness of financial statements.

When a client has not maintained proper and systematic financial records of his business activities, adequate and acceptable audit evidence will not be available to the auditor. He would, therefore, find it difficult to form an opinion with regard to the financial statements prepared from such record. Resultantly, it would be very difficult for him to collect necessary evidence to ensure himself about the accuracy of the financial statement.

2.         Existence of mass of data: In big organization financial records comprise of huge volume of documents. Even if such record is proper and systematic, the auditor may find it difficult to obtain audit evidence in respect of each and every item out of mass of information due to a number of limitations e.g. time, cost, and planning, supervision, assistance from client’s office etc. The auditor may decide not to go in greater details to acquire audit evidence.

3.         Client’s assistance facility: Certain situations arise during the course of an audit where a client hesitates, avoids or is reluctant to provide the information desired by an auditor. Under such circumstances, it becomes difficult for the auditor to form an opinion about the position reflected in the financial statements and to certify a true and fair view of the state of affairs of things.

4.         International concealment and falsification: A serious difficulty may arise for an auditor where a client has adopted a planned technique for concealing material facts and to falsify the accounting records with a view to present a very bright, sound, and progressive financial position through the financial statement. The existence of such concealment and falsification cannot come to the knowledge of auditor by routine planning. His planning and verification techniques should be such to expose falsification and concealment.

5.         Accounting procedures problems: In case of organizations having multiple business locations not at all visited by the auditor a problem may arise for him in respect of the verification of certain items like closing inventory, cash, work-in-process, etc.

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