LIMITED AUDIT Meaning and
Definition
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A limited audit refers to a type of examination conducted on the financial statements of an organization with certain restrictions imposed on the scope of the audit. In this context, a limited audit typically focuses on specific financial aspects or accounts, rather than conducting a comprehensive and all-encompassing assessment.
The primary purpose of a limited audit is to provide a level of assurance to stakeholders regarding the accuracy and reliability of a particular element or section of the financial statements. It aims to address specific concerns or areas of risk identified by the organization or its stakeholders. These concerns may include the valuation of certain assets, compliance with specific regulations, or evaluation of internal controls related to a particular function or process.
As opposed to a full comprehensive audit, which looks at all aspects of an organization's financial operations, a limited audit is narrower in scope. It may involve a targeted review of financial records, interviews with key personnel or management, and analysis of supporting documents related to the specific area or issue being examined.
The outcomes of a limited audit are usually summarized in a separate report from the organization's overall financial statements, highlighting the findings, areas reviewed, and conclusions reached. It is important to note that a limited audit does not provide the same level of assurance as a full audit, as it is specifically focused on the limited scope defined at the outset.
Overall, a limited audit provides stakeholders with a more focused analysis of specific financial matters without conducting a complete examination of all financial aspects within an organization.
Common Misspellings for LIMITED AUDIT
- kimited audit
- oimited audit
- lumited audit
- ljmited audit
- lkmited audit
- lomited audit
- l9mited audit
- l8mited audit
- linited audit
- likited audit
- lijited audit
- limuted audit
- limjted audit
- limkted audit
- limoted audit
- lim9ted audit
- lim8ted audit
- limired audit
Etymology of LIMITED AUDIT
The etymology of the word "limited" traces back to the Latin word "limitare", meaning "to limit" or "to bound". It was derived from the noun "limes", which referred to a boundary or limit.
The word "audit" comes from the Latin word "audire", meaning "to hear". In its original context, an audit referred to a formal examination of financial accounts by a qualified person to ensure accuracy.
Therefore, the term "limited audit" combines the notion of setting boundaries or limitations on the scope of an examination with the concept of a formal financial review. A limited audit refers to an audit performed with specified restrictions or constraints, focusing on specific areas or accounts, rather than a comprehensive and extensive examination of all financial records.
Similar spelling words for LIMITED AUDIT
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