Which of the following is a limitation of a financial audit?
A. It detects all minor errors
B. It relies on test checking and sampling
C. It provides absolute assurance
D. It is completely objective with no use of judgment
Answer: Option B
Solution (By JKSSB Mock Tests)
Audits provide reasonable (not absolute) assurance because they heavily rely on sampling and test checking, making it impossible to check every transaction.
Explanation:
The NCLAT is the appellate authority that hears appeals against the orders passed by the National Company Law Tribunal (NCLT) under the Companies Act 2013.
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