SangeetaSangeeta asked 1 year ago
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1 Answers
RaviRavi Staff answered 1 year ago

There is Problem with Nature of Financial Reporting. For example they give options FIFO Vs Weighted Average , Sometimes Subjective, Like Research Phase Vs Development Phase, there is ambiguity also, so companies have different financial statements is same situation, this is called variability.
Because of this, it is difficult to find out whether company is genuinely doing adjustments or manipulations. This makes audit difficult , hence it is inherent limitation of audit.

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