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What Are The Advantages And Disadvantages Of Routine Checking?

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abdul rehman answered
The benefit of routine checking is that there is accuracy of accounting books and records. The sub-totals, totals, cast and carry forward posting, balancing and transfer are stated as correct. Routine checking is useful to check frauds in the books of accounts. The responsibility lies on the head of management for location of fraud. The management can use this tool to meet its duty. Routine checking helps to verify posting made in the ledger. The correct posting can provide true and fair view of financial statements can verify posting through it. Routine checking is useful to eliminate the alteration of figures. The management can meet its obligation with the help of routine checking. The employees cannot alter figures. The benefit of routine checking is that final checking work is reduced. The final checking becomes early, as major work has already been completed through routine checking.

The work of routine checking is given to the junior employee. They do not consider it as important matter. Therefore the expected results cannot be produced for audit purpose. The demerit of routine checking is that planned frauds are not disclosed. The responsibility of fraud lies on the head of management. The audited accounts may fail to provide true and fair view. The demerit of routine checking is that errors of principle are not disclosed.

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