Everything is in the server

This is my first time as an internal auditor, I was the one who wanted to go for the training even though a.k.a.k preferred for me not to go. My first auditing session was with the purchasing department, it was an easy audit since every documentation for all the process were comprehensively prepared, however there were a few minor non - compliance that can be rectify.  

The second session was the account department, which caused me to be irritated with the staff, despite the poor documentation and discrepancies between data and trend analysis, the only answer that my friend and I received while auditing was "Everything is in the server" and "Unable to track the document since the person in charge has resigned" "When people resigned they don't care about what happen in the department". I gave my opinion on few things that can be amended, the respond was "We are paperless, so we don't do documentation, everything is in the server".  So throughout the session it was like listening to a broken record repeating "Everything is in the server, Everything is in the server, Everything is in the server".

Headache and heartache!!