Apex Infra Ltd. is a mid-sized infrastructure company engaged in construction of highways and bridges. During the statutory audit, the auditor…

(a) In the given case of Apex Infra Ltd., the auditor observed disputes with contractors, pressure on site managers, dependence on automated systems and aggressive working capital practices. These factors indicate that mere checking of books of account is not sufficient and that the auditor is required to possess working knowledge of disciplines other than auditing. (a) Auditing and Statistics & Mathematics: Auditor is expected to have the knowledge of statistical sampling for meaningful conclusions and mathematics for verification of inventories. In the case of Apex Infra Ltd., where large-scale construction activities and inventories of construction materials are involved, statistical techniques help the auditor in selecting representative samples and drawing reliable conclusions from voluminous transactions and records. (b) Auditing and Financial Management: Auditor is also expected to have knowledge about various financial techniques such as working capital management, funds flow, ratio analysis, capital budgeting etc. Since the finance department of the company is following aggressive working capital management practices, the auditor requires understanding of financial management concepts to assess liquidity position, evaluate financial risks and analyse whether such practices may lead to possible misstatements in the financial statements. (c) Auditing and Data Processing: EDP auditing in itself is developing as a discipline in itself. As the company heavily relies on automated data processing systems, the auditor should understand the functioning of computerised accounting systems, internal controls in EDP environment and risks relating to processing of electronic data to ensure reliability and accuracy of financial information. (d) Auditing and Behavioural Science: Knowledge of human behaviour is essential for an auditor to effectively discharge his duties. In the given case, pressure on site managers to achieve targets and frequent disputes with contractors may create conditions conducive to manipulation, bias or fraud. Understanding behavioural aspects helps the auditor in assessing management attitude, identifying unusual conduct and evaluating the possibility of intentional misstatements.