Asked by: Shiqi Neudertasked in category: General Last Updated: 28th May, 2020
What are the limitations of an audit?
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Regarding this, what are the inherent limitations of an audit?
Inherent limitations are such features of audit that restrict the scope for an auditor to obtain absolute assurance. It is because of inherent limitation of an audit the practitioner can't assure the user of f.s.t that the f.s.t are absolutely free from material misstatement.
Similarly, what is auditing discuss the importance and limitations? Advantages and Limitations of Auditing . Auditing is the process of inspecting the books of accounts to authenticate their accuracy and reliability. It is an important process to the company itself, the government, the investors, creditors, shareholder etc. They all rely on audited accounts to make important decisions.
Keeping this in view, what are the advantages of an audit?
ADVANTAGE OF AUDITING . It helps the management in detection of errors and frauds. It helps the management in obtaining loans from banks and other financial institutions as the audited statements are relied upon. It builds up the reputation of the business.
What are the disadvantages of audit Programme?
Disadvantages Of Audit Program
- Audit Program Harasses To Staffs. All the staffs should perform task within the limitation given in audit program.
- Possibility OF Being Unsuitable. Nature and size of business differs.
- Audit Program Increases The Chance Of Fraud.
- Audit Program Is Unsuitable To Small Concern.
- Exclusion Of Problems Of New Technology.