The Controller Who Had Been with Bianca Limited for Six

Essay

The controller who had been with Bianca Limited for six years was fired last month,allegedly for pocketing cash.Unfortunately,there was a fire in the accounting department the week before he was fired,which destroyed the accounting records,including the computer equipment and current backup disks.The only records available for the current year is a copy of the computer system that is a month old.There are also disks for the year-ends going back three years.These were at the president's home,the place where the company kept archival records.
Required:
Explain how this situation might affect the audit process.