Advantages Of Audit Note Book

Accounting , Business
Some of the notable advantages or merits of audit note book can be pointed out as follows:

1. Helps Preparing Audit Report

Audit note book helps the auditor to prepare final audit report of the business.

2. Future Reference

Audit note book provides past business information to the audit staff. So, it can be used as future reference.

3. Helps New Auditor

Audit note book records all the weakness, errors and difficulties of previous year. So, new auditor can easily understand the complexities of the business.

Audit note book helps the auditor to measure the working efficiency of his/her audit staffs.

5. Legal Evidence

Auditor can present audit note book as legal evidence in the court if he has been accused of negligence or misfeasance.
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Disadvantages Of Audit Program

Accounting , Business
Major drawbacks or disadvantages of audit program can be expressed as follows:

1. Not Suitable For Small Firms

Audit program is not suitable for small business firms having less volume of transaction. 

2. Lack Of Flexibility

Audit program lacks flexibility due to the rigidness.

3. Harasses To Staffs

Audit work should be completed within the given time by following the instructions and procedures provided in the audit program. So, it harasses to the employees.

Audit work is performed according to the audit program. Employees cannot work according to their skills and experience. They cannot give any suggestion to improve the work. So, it lacks initiative.

5. Unsuitability

Audit program is design according to the size and nature of the business. So, audit program of one business firm may not be suitable for other business organizations.
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Advantages Of Audit Program

Main advantages or benefits of audit program can be highlighted as follows:

1. Proper Supervision And Control

Properly developed audit program helps the auditor to know the progress of work and judge the efficiency of staffs. So, audit work can be properly supervised and controlled.

2. Time And Labor Saving

Audit work is performed on the basis of guidelines and procedures included in the audit program. Works can be performed smoothly without any confusion or difficulties. So, audit program helps to save time and effort. 

3. Proper Distribution Of Work

It helps to distribute the audit work among the staffs according to their knowledge, skills and experience. It increases the working efficiency of the employees.

4. Maintaining Uniformity

It helps to maintain uniformity of the audit work.

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5. To Maintain Continuity

Audit program includes complete audit procedures and guidelines. So, audit work will not be affected in the absence of any staff. New staff can easily handle the job.

6. Proof In The Court

Audit program is a legal document and auditor can present it in the court if needed.
advantages audit program

7. Future Reference

It can be used for future reference also.

8. Detection Of Error

Audit Program detects errors occurred in the audit process and helps the auditor to prevent such errors.

9. Suitable For Large Business

Audit program is useful and suitable for large business houses with large volume of transactions.
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Advantages Of Auditing

Accounting , Business
Main advantages or benefits of auditing can be highlighted as follows:

1. Detection And Prevention Of  Errors

Auditing identifies accounting errors and frauds in the books of account and helps to prevent such errors and weakness in the accounting process.

2. Helpful In Obtaining Loan

Audited reports of previous period are required to obtain loan from banks and other financial institution. So, audit is helpful in obtaining business loan.

3. Accessing Tax Liabilities

Audited reports are easily accepted by tax authorities. So, audit is useful to access tax.

4. Maintenance Of Account

Regular auditing gives moral pressure to the employees of the accounting department. It helps proper maintenance of books of accounting. So, audit is very helpful for up-to-date accounting.

5. Increase Goodwill

Audit helps to increase goodwill of the firm. It also helps to increase public image.
advantages of auditing
6. Easy Comparison

Auditing facilitates comparison of accounts of different periods which helps the management to know the current position of the business.

7. Increase Operational Efficiency

Valuable suggestions and instructions provided by the auditor helps to increase operational efficiency of the business.

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8. Helpful In Future Planning

Audit helps the management to make future plans and policies. Past audited statements are useful in planning and decision making.

9. True Profit Or Loss

Auditing helps to disclose true profit or loss of the business by which the management and other users can know the  financial position of  business.

10. Claim Settlement 

Audit helps to settle claims (retirement or death) among business partners.
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Limitations Of Statistics

Education , General
Major limitations or drawbacks of statistics can be highlighted as follows:

1. No Study Of Individual Items

One of the main disadvantages of statistics is that it does not deal with single or isolated items. It deals with the measurement of groups or masses only. So, data and information of single item cannot be obtained.

2. Not Applicable For Qualitative Phenomenon

Statistics is applicable only for quantitative data (data of those items which can be measures in numbers) such as income, expenses, wages, height etc. Qualitative phenomenon(which cannot be measured in numbers) such as blindness, efficiency, honesty etc. are completely ignored.

3. Applicable Only For Homogeneous Data

Statistics is applicable for homogeneous data only. It cannot study heterogeneous data. So, data of similar nature is required to apply statistical methods.

4. No 100% Accuracy

100 % accurate result cannot be obtained from statistical methods.

5. Not Universally True

Statistical facts are totally based on the averages. So, its laws are not universally true.
limitations of statistics

6. Requires Special Knowledge

It requires special knowledge to apply statistical laws. Simple knowledge of mathematics or economics is not sufficient to work with statistical data.

7. Possibility Of Mislead

Sometimes, result obtained from statistics may be misleading because of improper collection and interpretation of data.
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Advantages And Disadvantages Of Standard Deviation

Education , Statistics
Advantages Or Merits Of Standard Deviation

The main advantages of standard deviation can be expressed as follows:

1. Rigidly Defined

Standard deviation is rigidly defined measure and its value is always fixed.

2. Best Measure

Standard deviation is based on all the items in the series. So, it is the best measure of dispersion.

3. Less Affected

Standard deviation is least affected by the sampling fluctuations than other measures (mean deviation and quartile deviation).

4. Suitable For Algebraic Operation

Standard deviation can be used for mathematical operations and algebraic treatments. It is also applicable in statistical analysis.


Disadvantages Or Drawbacks Of Standard Deviation

Some of the major disadvantages of standard deviation can be expressed as follows:

advantages and disadvantages of standard deviation

1. Complex Method

Standard deviation is complex to compute and difficult to understand as compared to other measures of dispersion.

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2. High Effect

Standard deviation is highly affected by the extreme values in the series.

Pros And Cons Of Standard Deviation In Short

Pros:
- It is well defined and well known measurement of dispersion
- It is useful for mathematical, algebraic and statistical treatments
- It is less affected by fluctuations

Cons:
- It is difficult to calculate and hard to understand
- It is affected by extreme items or values
- Not applicable for open end class frequency distribution
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