Can Anyone Explain The Limitation Of Internal Audit?

The limitation of internal audit is that audit staff may be incompetent. The purpose of internal audit fails to help the management. There may be lack of experience and training on the part of internal audit staff. The limitation of internal audit is staff shortage. There may be need of reasonable audit staff to examine the record. The shortage of staff is hurdle to get the benefits of internal audit.

The limitation of internal audit starts when there is time lag between recording and checking of entries. The accounting and internal audit must go side by side with minimum time gap. The limitation of internal audit is that the internal audit may be linked with executive function. In this case he can not examine the accounting book and other records. He can not find out his own weakness.

It will be wastage of time and money to conduct internal audit. The limitation of internal audit is that there may be errors in the books of accounts. It depends upon the expertise of internal audit staff. If audit staff is competent there is less chance of errors. In case of poor audit staff there is no guarantee that audited accounts are free from errors.

Name and explain three echelon of management