Definition ∞ Audit limitations refer to the inherent constraints that restrict the scope and certainty of an audit. Within the digital asset sector, these constraints often stem from the technical complexity of smart contracts, the pseudonymous nature of blockchain transactions, and the rapid pace of protocol updates. An audit provides a snapshot of security at a specific moment, not a guarantee against future vulnerabilities or exploits. It identifies issues based on current knowledge and scope, leaving certain risks unaddressed.
Context ∞ Understanding audit limitations is crucial for interpreting news concerning security breaches or unexpected protocol behavior in decentralized finance. News reports frequently highlight audits as a mark of trust, yet subsequent incidents reveal that audits are not absolute assurances. The ongoing discussion centers on improving audit methodologies and integrating continuous monitoring to mitigate these inherent boundaries.
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