Auditors' Reports never cease to entertain. It is a pity that they are rarely read. Annexure to Auditors' Report of Provogue (India) Limited for the year 2008-09 says that " The Fixed Assets register was maintained by the company till the previous year. However during the year the same has been misplaced and the Company is in the process of compiling the new fixed assets register". The Annexure goes on to add, "There are adequate internal control systems commensurate with the size of the Company and the nature of its business with regard to purchase of inventories and FIXED ASSETS and for the sale of goods and services".
If the internal control systems are adequate, how come the Fixed Assets Register was lost? How long will it take to compile the new fixed assets register? Do you think that a company that takes a long time to compile a duplicate register will have a credible 'Disaster Recovery Plan'?
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