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An Auditor cannot give absolute assurance because of the Inherent Limitations of Audit. i.e
1. Work of an auditor is permiated by judgment
2. Most of Audit evidences are persuasive rather than conclusive
3. Audit is of Test Nature
4. Inherent Limitations of Internal Control.
Perhaps this is what item 1 means but let me say it anyway- the auditor can
be paid off to hide the truth , ignore red flags and make the books look good.
Sometimes the pay-off is subtle- the auditor is made aware that the client is important to the firm and that a unfavorable audit would cause the firm to lose the account.
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