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DISADVANTAGES
1. Frauds by management
Auditing fails to check planned frauds. The management can play tricks to manipulate the accounts in order to conceal their inefficiencies. The audited accounts could not show the true view.
2. Wrong certificate
Auditing is based on many certificates taken from management and other persons. Auditing may fail to provide the desired results. When certificates provides wrong information.
3. Misleading clarification
Auditing fails to disclose correct information. The management may not provide correct clarification. The auditor is bound to present his report even of the clarification is not true.
4. No true picture
The auditing does not present true picture. Auditing fails to disclose true picture when figures have been manipulated.
5. No correct view
Auditing fails to present correct view. There are limitations of accounting so figures are not facts. These figures are based on opinion. Thus auditing is unable to disclose correct view.
6. No suggestion
Auditing is not concerned with the management policies. The auditor cannot guide management for better use of capital. He is unable to suggest what should have been done.
7. Absence of honesty
Honesty and independence are highly essential traits. The auditor must certify what is true. The absence of honesty and independence means failure of audit purpose.
8. Bias of auditor
The auditing fails to present fair view due to bias of an auditor. It is the quality of an auditor that he should be independent. The bias auditing fails to help many people.
9. High cost
The audit work is completed without cost. The cost of audit should not exceed of errors and frauds. Auditing fails to serve million of business entities.
10. Past action
Auditing is nothing more than checking of past activities. It is not concerned with present or future. The audit fees increase the cost of business. Such cost does not help to improve market standing of enterprises.
What else can I help you with?
What are the advantages of statutory auditing?
advantages and disadvantages of non statutory audit
What is meant by auditing?
auditing is a review process,usually of accounting procedures
How auditing begins where accounting ends?
Auditing begins where Accountancy ends.
What is the definition of auditing?
Auditing is the examination and evaluation of financial statements to check financial accuracy.
What are internal auditing standards?
Standards are principle-focused and provide a framework for performing and promoting internal auditing.
What are the advantages and disadvantages of auditing?
there are none
What are the advantages and disadvantages of an audit?
What are advantages of human resources auditing
What are the advantages of statutory auditing?
advantages and disadvantages of non statutory audit
What has the author J Donald Warren written?
J. Donald Warren has written: 'Handbook of Accounting and Auditing' 'Continuous auditing' -- subject(s): Auditing, Internal, Internal Auditing
What has the author Vivian R V Cooper written?
Vivian R. V. Cooper has written: 'Manual of auditing' -- subject(s): Auditing 'Student's manual of auditing' -- subject(s): Auditing
What is Auditing practices and methodology of firms?
What is Auditing practices and methodology of firms?"
What is meant by auditing?
auditing is a review process,usually of accounting procedures
How auditing begins where accounting ends?
Auditing begins where Accountancy ends.
What is the first step in auditing access to a NTFS folder?
enable login auditing
When was Central Auditing Organization created?
Central Auditing Organization was created in 1942.
What did the Auditing Standards Board do in response to the Treadway Commission report?
The Auditing Standards Board (ASB) of the AICPA issued ten new auditing standards in 1988.
What has the author James Roth written?
James Roth has written: 'Four approaches to enterprise risk management' -- subject(s): Auditing, Internal, Internal Auditing, Risk management, United States 'Adding value' -- subject(s): Accounting, Auditing, Internal, Internal Auditing, Value added 'Control model implementation' -- subject(s): Auditing, Internal, Case studies, Internal Auditing
