MANAGEMENT

Detailed explanation-1: -The risks of inaccurate financial reporting include bad operational decisions, reputational damage, economic loss, penalties, fines, legal action and even bankruptcy.

Detailed explanation-2: -Many factors can contribute to inaccuracies in financial reporting, including inadequately trained staff, error-prone manual processes and inconsistent accounting methods. Inadequately trained or incompetent staff across the company can directly and indirectly cause accounting errors.

Detailed explanation-3: -The limitations of incomplete records are as follows : (a) As double entry system is not followed, a trial balance cannot be prepared and accuracy of accounts cannot be ensured. (b) Correct ascertainment and evaluation of financial result of business operations can not be made.