Limitations of Auditing- Reasonable cost: A limitation on the cost of an audit result in selective testing or sampling, of the accounting records and supporting data.
- Reasonable length of time: the auditor's report on many public companies is usually issued three or five weeks after the balance sheet date.
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The company auditor uses techniques like test checking and sampling to limit the scope of the audit.
The auditor also has to audit the whole year's account within a limited time.
So, they have such a limitation of time, within which the audit has to be completed.,An Auditor has to rely on sampling and test checking.
Additional Financial burden − An organization has to bear additional financial burden on account of any ,Following are a few limitations of auditing −.
Rely on Experts − An Auditor has to rely on experts like engineers, valuers and lawyers for estimation and ,Generally,
the audit evidence the auditor collects is persuasive in nature, not conclusive in nature.
So there is never cent percent conclusive evidence in most cases while auditing.
This is one of the major limitations of auditing.
There also a lot of use of estimates in accounting.,Generally, the audit evidence the auditor collects is persuasive in nature, not conclusive in nature.
So there is never cent percent conclusive evidence in most Suggested VideosAdvantages of AuditingLimitations of Auditing,It is the same case with investors, who will find assurance in the books of accounts after auditing.
Browse more Topics under Concept Of Auditing.
Meaning and Suggested VideosAdvantages of AuditingLimitations of Auditing,One of the biggest advantages of auditing is that it offers assurances to the owners, investors, shareholders etc.
The owners of the business will be assured Suggested VideosAdvantages of AuditingLimitations of Auditing,The company auditor uses techniques like test checking and sampling to
limit the scope of the audit.
The auditor also has to audit the whole year's account within a limited time.
So, they have such a limitation of time, within which the audit has to be completed.,The company auditor uses techniques like test checking and sampling to limit the scope of the audit.
The auditor also has to audit the whole year's account within a limited time.
So, they have such a limitation of time, within which the audit has to be completed.