Question

The concept of audit is not free from limitation comment

Answer 1

Answer:

Explanation:

LIMITATIONS OF AUDIT.

(i) Higher Cost Burden: Due to Higher Cost Burden, the auditor limits his scope of work to selective testing or sampling thus in depth checking of books of accounts is not possible.

(ii) Based on test checks: Generally an auditing exercise is based on test checking.

Answer 2

Answer:

LIMITATIONS OF AUDIT

Besides having various benefits, there are some inherent limitations of auditing. These are as follows :

(i) Higher Cost Burden: Due to Higher Cost Burden, the auditor limits his scope of work to selective testing or sampling thus in depth checking of books of accounts is not possible.

(ii) Based on test checks: Generally an auditing exercise is based on test checking. Inferring a result on the basis of test check always need not to be true.