What Are Disadvantages Of Audit?

Auditing fails to check planned frauds. The management can play tricks to manipulate the accounts in order to conceal their inefficiencies. The frauds committed in such circumstances are not disclosed. The audited accounts can not show true and fair view. Auditing is based on many certificates taken from management and other persons. These certificates may not disclose true information. Auditing may fail to provide desired result.

When certificates provide wrong information, the financial statements can not show correct position. Auditing fails to disclose correct information. The background of entries may not be clear to the audit staff. The management may not provide correct clarifications. The auditor is bound to present his report even if the clarification is not true. The auditing fails to help many persons who rely on audit report. The auditing does not show cent per cent true picture.

The auditor is concerned with the facts and figures shown in the books of accounts. When figures have been manipulated, the auditing fails to disclose true picture. The purpose of audit fails when it is unable to depict real scene of business affairs. The auditing fails to present correct view. There are limitations of accounting. So accounting figures are not facts. These are based on opinion. Moreover the auditor has to make judgement on various matters.

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