You are auditing a listed company that manufactures high quality engineering products with numerous components, manufactured and assembled by the company. During your audit of inventory valuation you are told that you cannot see the costings of certain new products because they had been kept on computer file which had become accidentally corrupted. The company has valued the products at estimated cost. The directors’

report on the internal control goes beyond stating that they have conducted a review of the effectiveness of internal control by adding that no material weaknesses have been identified in the system of internal control.

The company has an audit committee.

What action would you take?