Limitations of an audit
- It is not possible to detect all the frauds and errors that might have taken place during the year;
- Management might fail disclose to the auditor some of the information that is needed;
- An audit is carried out on a test basis. It might not therefore be possible to examine all the transactions. The samples selected might not be representative of the population;
- Time limit placed on the auditor‘s work. This could limit the amount of work to be performed.
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