Suppose that Boardman Manufacturing Corporation (mentioned in E-1) was being sued in a class action because of injuries to persons using products produced at the plant. The action alleges that poor product quality caused the injuries.

Required:

a. How would this circumstance affect the types of evidence Robert Pointer and Peggy Carlisle would seek in the audit?

b. Identify an example of at least one piece of evidence that could be collected in each of the classifications for legal rules of evidence relevant to this problem.

E-1

Peggy Carlisle recently graduated from Goodwin University, where she majored in engineering with a minor in business administration. She was hired by Boardman Manufacturing Corporation as a junior staff internal auditor, and she reported to work this week for the first time. She was assigned to work with Robert Pointer, a newly promoted senior auditor, on an audit of the company's quality control program for production at one plant.

Robert is a little uneasy about this, his first assignment as a senior auditor. To make things even more challenging, he has been assigned to supervise Peggy's work.

Required:

Review Standard 420 and indicate which provisions Robert and Peggy may have the most trouble meeting. Explain your selection(s).