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usually audit is limited to financial analysis but due diligence is not only analysis of financial statments but also business plan ,sustainablity of business,future aspects ,corporate and management structure,legal issues etc
the audit gives us positive assurence that is true and fair view whereas due diligence gives us negative assurence i.e identify the risk if any , audit is of recurring nature but due diligence is occasinal event
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What are the penalties in an IRS audit?
This depends upon what the audit uncovers, and other factors like the taxpayer's criminal history. But the ultimate consequences of an audit range from prison, to repaying taxes that are due, to nothing at all.
What are the limitations of an external auditor?
here are the limitations of the external auditor: time lapse: lapse of time between balance sheet date and the presentation of the audit report may be up to 4 months. audit testing and selective samples: has limitations due to sampling risk Assessment of materiality: the assessment of materiality with both quantitaive and qualitative requires high degree of professional judgement Highly specialised areas: forming professional judgement in highly specialised areas can often result in disagreements between auditors and clients Report format limitations: the standard format of the audit report may not reflect fully the complexities involved in the audit process and the decision of the audit opinion. despite these limitations an audit of the financial statements adds credibility to the financial information
What is the difference between single or married on W-4 Form?
The amount of taxes withheld due to your status.
What is the definition of Final Audit?
The English phrase 'audit programme' means a listing of audit procedures to be performed in completing an auditUpon the architect's satisfactory final inspection and favorable review of the contractor's final payment request, the architect will issue a certificate indicating that the final payment is due....The Final Solution was the plan to rid of Euro
Why can't auditors invest in companies that they audit?
The main reason an auditor cannot invest in companies they audit is of course that there is a conflict of interest. An simple example of this would be an auditor, auditing Apple Inc's accounts, the auditor would have prior knowledge on the companies profit, which would not be public knowledge until the results are made public. Based on Apple's performance an auditor who have information that could be advantage regarding as another example the possible up or down side of the companies stock price. There are numbers other examples such as an auditor conducting due diligence on a merger and acquisition. But the main reason is a conflict of interest
