You are the audit manager on Zaryab Glass Industries Limited. This client has been audited by your firm since the past 3 years. The manager performing the audit before you, Ali, recently resigned and you have been handed over the client.

You have initial meetings with the client and review the last year working papers and note the following.

• You review the last year working papers and find that some of the documentation isnt complete. The working in the audit file doesnt seem to be correct and may affect current years audit as well.
• The CFO, Hassan, asks you if Zaryab Glass Industries is an important client for you considering fees. You mention that you have bigger clients, he tells you that it was the biggest client for Ali and that they had become good friends over the past few years.
• In your meeting with the MD, Zaryab, he asks you whether you will also help them find a party willing to buy Zaryab Glass Industries. When you show some reluctance he mentions that Ali was helping them and had introduced a few parties to them.
• When you meet the Manager Accounts, Faisal, he informs you that their system had crashed during the year so some data may not be available. When you question him about backup and recovery procedures he gets aggressive and says that are you accusing him of lying and leaves the meeting.
• You notice that your firm has not attended last years Annual General Meeting, when you ask Hassan he informs you that Ali had said it was not required so the auditors had not been invited.

Point out any concerns you may have from the observations above. Do they have any impact on your audit?