AuditProgram

Disadvantages of Audit program?

Disadvantages of Audit program?

Even though audit program has number of advantages, it is not free from limitations. Some of the major disadvantages of audit program are as follows:

Disadvantages:

1. Auditors may have covered the whole field but it can not be said with certainty     that all the necessary work have been done.

2. The work may become mechanical and particular parts of the program may be carried out without any understanding of the object of such parts in the whole audit scheme.

3. Audit program loses its flexibility. While each business has separate problems. So audit program cannot be laid down for each type of business.

4. It kills the initiative of capable persons assistant cannot suggest any improvement in the plan.

5. Audit program is mechanical that it ignores many other aspects like internal control. It cannot update for dynamically based on the nature, it designed initially.

6. Audit Program is not suitable to small business concern has only few transactions and work of audit can be completed in short period of time. So, audit program is not essential to audit such concern.

7. All the staffs should perform task within the limitation given in audit program. So, staffs cannot use their knowledge in the audit work.

8. Nature, timing and size of business is differs. So, the program which is prepared at the beginning of the year remains unsuitable. Different organizations may have their own problems. So, similar type of program may not be applicable to all types of entity.

9. The client staffs will get information about the audit program in advance which gives the chance of committing frauds. Similarly, it harasses the audit staffs so they perform the work of audit carelessly which also increases the chance of committing frauds.

10. The another disadvantage audit program is Exclusion of Problems of new technology - new techniques and technologies are   used in the accounting work. Such technology creates the problem in the work of audit but such problems and remedial measures are not included in the audit program.

11.The disadvantage of audit program is that changes in it are not acceptable. The nature of activities of concern may change. There is a need to adjust the changes in the program. A master program cannot be drafted.

12. The disadvantages of audit program is that there is no revision in it. The business changes from year to year. The working may expand or otherwise. The audit program requires adjusting itself to the changing circumstances.

13. The accounting staff can know the working of audit. The auditor applies various methods for checking the accounting books. Having knowledge of auditing the accounting staff can devise means to record the transaction. In this way they can avoid their responsibility.

1. The disadvantages of audit program are that it provides protection to inefficient audit assistants. The junior auditors can protect themselves due to weakness of audit program. The clerks feel responsibility for the duties stated in the program.
2. A hard and fast Audit program may kill the initiative of efficient and enterprising assistants.

In any audit program, it has some inherent limitations. Please Read more.... some other accounting related articles with tutorials.