As an auditor, express your comments/views on the following situations:
While auditing the books of account of Manang Ltd., Chief Accountant did not produce the records of debtors saying that all the debtors are paying all their dues in due date and insisted that the auditor need not verify the debtor‟s balance, as the debtors are considered good the management.
While In this case auditor fails to obtain sufficient information to form an overall opinion the matters contained in the financial statements, he may than issue a disclaimer of opinion.
In this case, auditor is unable to verify the debtors‟ ledger it amounts to restriction on the scope of the duties of an auditor. Therefore auditor may state that he is unable to express an opinion because he has not been able to obtain sufficient audit evidence to form an opinion.