Limitation of internal check
Can Anyone Explain Different Disadvantages Of Internal Check?
The demerit of internal check is that it is unfit for small business units. There are few employees. One person may be performed two or more duties at a time. The shortage of staff is the main problem for implementing internal check. It can do nothing for small business units which are highest in number in the world. The demerit id internal check is that if negligence on the part of staff. The top level management may not care for the procedure for proper working of their services. The internal check system fails to prove the results when officer concerned can overlook the rules to the game.
The disadvantage of internal check is that quality of work may be affected by it. The auditor can rely on internal check system. The purpose of audit may no be achieved. The cost of internal check may exceed the cost of error and frauds. In this case internal check becomes burden on the business concern. The management is responsible for increasing the cast of organization. The owners and investors can suffer due to low rate of income on their investments. The demerit of internal check is wastage of resource for a small business.
The disadvantage of internal check is that quality of work may be affected by it. The auditor can rely on internal check system. The purpose of audit may no be achieved. The cost of internal check may exceed the cost of error and frauds. In this case internal check becomes burden on the business concern. The management is responsible for increasing the cast of organization. The owners and investors can suffer due to low rate of income on their investments. The demerit of internal check is wastage of resource for a small business.
Advantages and disadvantages of manufacturing concern
The demerit of internal check is that it is unfit for small business units. The shortage of staff is the main problem for implementing internal check.