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hi
everyone
I can only think out a point on this Q- limitation on audit, that is the sampling method.
To be more detailed, that is we choose deducting a samlying rather than aduit all population. This might include some areas which may lead possile misstatement are out of the samply size.As a result, we conculde a misstatement on FS.
But without this, I cannot think out others.
Can U help me ?
THANK U:)- Topics: 0
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Hi..I believe you are referring about the inherent limitation of the auditor because auditors do not test all the transactions of the company and therefore they do not give an obsolete opinion but rather they give a reasonable assurance that the FS give a true and fair view and that they have been prepared in all material respect to an applicable financial framework. I don’t believe that this is referring to limitation on the audit.
Limitation on the audit could be for the following reasons:
1). Some records which were requested by the auditor for examination was not presented to the auditor.
2). The auditor was unable to get sufficient appropriate evidence to support a figure in the FS. etc. The auditor will then have to use his judgment to determine if the matter is material to the FS.In this case base on the severity of the matter whether it affects a single figure in the FS or whether it is pervasive to the FS, then the auditor may which to modify the report by giving a qualified opinion or to issue a disclaimer of opinion.
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So u mean I make de Q wrong!
‘Limitation on audit’is the limitations caused by clients. when auditors are conducting an audit,
rather than the limitations born with the auditing work?!I’m a litter bit puzzled.
So how will the examer ask if he wanna to ask the inherent limitaions? Or how can we distinguish these 2Qs in exam???
Thank u
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I guess when he says limitations ON audit he means limitation of scope(Which is now called Auditor could not gather sufficient and appropriate audit evidence)
you will write THIS in answer
Limitation on the audit could be for the following reasons:
1). Some records which were requested by the auditor for examination was not presented to the auditor.
2). The auditor was unable to get sufficient appropriate evidence to support a figure in the FS. etc. The auditor will then have to use his judgment to determine if the matter is material to the FS.
&
When he says Limitations OF audit (he means inherent limitation of the audit). In this case you will write sampling methods used, short of time etc..
The one word “OF” or “ON” is the changing the meaning of the whole question 😮
we really have to keep our eyes open on exam day,
clever examiner!!!- Topics: 0
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@akberacca said:
I guess when he says limitations ON audit he means limitation of scope(Which is now called Auditor could not gather sufficient and appropriate audit evidence)
you will write THIS in answer
Limitation on the audit could be for the following reasons:
1). Some records which were requested by the auditor for examination was not presented to the auditor.
2). The auditor was unable to get sufficient appropriate evidence to support a figure in the FS. etc. The auditor will then have to use his judgment to determine if the matter is material to the FS.
&
When he says Limitations OF audit (he means inherent limitation of the audit). In this case you will write sampling methods used, short of time etc..
The one word “OF” or “ON” is the changing the meaning of the whole question 😮
we really have to keep our eyes open on exam day,
clever examiner!!!Great answer! Clear as crystal
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