Disadvantages of Internal Check
The disadvantages of internal check are given below.
1. Expensive: The system of internal check is more expensive and time consuming.
2. Not Applicable for Small Organization: This system is not applicable for small organization where there are only few employees. Only large organization having number of departments and complexity of jobs can get benefit of this system.
3. Monotonous for the Workers: As same work is done by the employees day after-day the job becomes boring and the employees lose their creativity.
4. Risky for the Auditor: When the auditor lies on the system of internal check and does not conduct tests he will be charged for negligence. complexity of jobs can get benefit of this system.
5. Disorder in Work: If the system is not fully organized and if there is any failure in the system, it creates disorder and confusion hence, chances of errors and frauds increases.
6. Chances of Collusion: Though internal check system protects errors and frauds but in reality there may be chances of collusion between two or more employee to indulge in frauds or malpractices.