During the audit of Beta Infrastructure Ltd. for the year 2024–25, auditor CA Ramesh observed that the company had lost significant accounting…

CA Final · Advanced Auditing, Assurance and Professional Ethics · RTP · January 2026
During the audit of Beta Infrastructure Ltd. for the year 2024–25, auditor CA Ramesh observed that the company had lost significant accounting records including invoices and supporting documents related to purchases and revenue due to fire. He performed additional audit procedures to obtain alternative audit evidence, however, he was unable to obtain sufficient appropriate audit evidence through such procedures. Consequently, he could not obtain adequate audit evidence regarding several material items in the financial statements. The auditor CA. Ramesh should:
(A) Express a Qualified Opinion since the records are incomplete.
(B) Express an Adverse Opinion as the financial statements are unreliable.
(C) Include an Emphasis of Matter paragraph highlighting the system failure while giving an unmodified opinion.
(D) Express a Disclaimer of Opinion, as auditor was unable to obtain sufficient appropriate audit evidence relating to material items.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

Express a Disclaimer of Opinion, as auditor was unable to obtain sufficient appropriate audit evidence relating to material items.

Topics: Standard on Auditing (SA), Reporting, Audit Evidence

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