¶ … inherent limitations of an audit and what an auditor recognizes this absence of absolute accuracy.
Limitations of an Audit:
There are many inherent limitations to an audit. The main reason for this is that the resource in terms of money and time required for achieving 100% accuracy in is more than the benefit that would come out of the audit. And even if one tried to achieve the 100% accuracy level, it would still not be possible due to other limitations.
The auditor also looks and checks the presentation of the financial statements and checks to see that they are in conformity with the generally accepted accounting principles of the region. The financial statements include the balance sheet, the income statement, the cash flow statement, and all the adjoining notes. The auditor guarantees that the financial statements are free from all material error, but not from immaterial error.
The auditor is not in the end responsible for the accounts...
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