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Inherent limitation on auditing
Auditing
Factors affecting inherent limitation of audit is good or bad for the entity
Answers (2)
Inherent limitations of an audit does not arise due to any particular reason rather there are several reasons that contribute and collectively restricts auditor in many different ways to limit him only to reasonable assurance. Sometimes these may lead auditor to give an inappropriate audit conclusion. So it will have an adverse effect on all stakeholders of entity. On auditorâ??s part, the effects of inherent limitations are reduced by taking appropriate steps e.g. proper planning to conduct audit engagement especially the risk prone areas, adequate supervision of junior members of audit team etc.
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