**Limitations of Auditing** All transactions cannot be checked – It is not possible for an auditor to check each and every transaction; he has to check them on sample basis. Evidence is not conclusive – Audit evidence is not conclusive in nature the confirmation of debtors is not conclusive evidence that all amount will be collected, the conclusions are persuasive rather than conclusive. Not easy to detect some frauds – It’s not easy for an auditor to detect the deeply laid frauds which involves acts designed to conceal them such as forgery, false explanation, and not recording transaction and so on. Audit cannot assure about profitability or efficiency of management – Even though the accounts are audited it doesn’t that the user can take granted the future profitability or prospects of concern as audit don’t comment on efficiency of the management. Rely on experts – The auditor has to rely on experts like lawyers, engineers, valuers etc. for estimation of contingent liability and valuation of fixed assets. Thanks

Auditing is an independent examination of financial statements with the objective to give opinion on such financial statements. Limitations of audit are: 1. Complex internal control system 2. Undetected frauds and errors 3. Audit is done on test check basis. 4. Audit is not conclusive in nature.