List five limitations of an audit

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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