Disadvantages of Internal Check
disadvantages of internal check are given below.
1. Expensive: The system of internal check is more expensive and time
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.