INHERENT LIMITATIONS OF AUDIT

in simple terms it means we can't do audit in full fledge or cover all aspects in detail because the pay ( fee) which auditor usually gets is insufficient ( or comparatively less) to cover all aspects in detail.

in simple terms it means we can't do audit in full fledge or cover all aspects in detail because the pay ( fee) which auditor usually gets is insufficient ( or comparatively less) to cover all aspects in detail.

in simple terms it means we can't do audit in full fledge or cover all aspects in detail because the pay ( fee) which auditor usually gets is insufficient ( or comparatively less) to cover all aspects in detail.

what has time got to do with it?...
what is "Balance between Benefit and Cost"?

in given time its next to impossible for an auditor to cover everything. Hence we have something called as sampling.
And cost means what an auditor incurs to perform such audit ( incl opportunity cost also)
If we perform audit in detail and check each and every aspect.. 1 audit would even go for more than a year also.
And the fee which an audit gets is comparatively less when compared to the efforts which he puts to perform.

Hence auditor perform audit on selective basis ( sampling) and gives and opinion as his benefit ( fee) isn't sufficient to cover everything in detail

Thank you so much...
But can you please explain this in context of ICAI study material?
I'm unable to relate this concept to the sentences given in study material...

I have no idea what does ICAI mean.. If you have surbhi bansal's mam book you can check it or watch out any video on YouTube.

okay thanks for your help.... I'll refer it

I can send you what is given in surbhi ma'am's book but I can't attach a file here

Thanks but I don't have any social media
It's okay.... I'll try