5. DISASTER RECOVERY PLANNING CONTROVERSY

The relevance of a disaster recovery plan (DRP) to a financial statement audit is a matter of debate. Some argue that the existence of a DRP is irrelevant to the audit. Others argue that it is an important control that needs to be considered in the assessment of internal control. Required: Address both sides of this debate.

a. Provide a logical argument why a DRP should not be considered in the audit.

b. Argue why a DRP is an important control and should be reviewed within the conduct of a financial audit.