Essay disadvantages of continuous audit

Essay Disadvantages Of Continuous Audit


DISADVANTAGES OF CONTINUOUS AUDIT 1. Expensive. monthly, quarterly or yearly. Disadvantages of Continuous Audit. one month or three months. Queries may remain outstanding because of long interval between two visits Demerits or Disadvantages of Auditing: The main risk in the audit program is towards the assurance services that derive wrong conclusions. Here are some of the limitations of an audit. Audit staff who spend much of their time working on one client may find their independence adversely affected; ii Disadvantages of Continuous Audit Expensive. Because the auditor has to devote more time to this audit About Bayt.com. Audit report without delay: In case adoption of continuous audit, major part of the audit work gets completed during running of the year itself Continuous audit or a detailed audit is an audit which involves a detailed examination of books of accounts at regular intervals i.e. So proper strategies should be implemented by the employers and the employees to get the best possible results..It is due to auditor continuous visits. It is due to auditor continuous visits. Alteration of figures Disadvantages (Demerits) of continuous audit: The following are the disadvantages of continuous audit: (i) High Cost: As continuous audit is conducted throughout the year the organization has to give huge remuneration to the auditor. ISCA-Chapter 6 -Disadvantages of Continuous Audit Techniques Advantages and Disadvantages of Continuous Audits A continuous audit is beneficial in flagging unusual or non-compliant activity in multiple areas of a firm, and ensuring that established. 6. Assurances are to be provided within the related certification. The auditor's work is spread more evenly throughout the year. Inconvenience Disadvantages of Continuous Audit 1. Continuous audit is not suitable for small business firms having less numbers of financial transaction. The auditor visits clients at regular intervals during the financial year and checks each and every transaction • The role of continuous auditing in relation to continu-ous monitoring. In other words, when the accounts of the client are checked continuously throughout the whole year or at intervals during the financial period is called as Continuous Audit The benefits of continuous improvement include increased efficiency, improved customer satisfaction and added employee engagement. Continuous audit is not suitable for small business firms having less numbers of financial transaction. Alteration Of Figures :-Already checked figures of accounts may be alternated by the dishonest staff and frauds may committed. So, he is in a position to check the information completely in detail. Disadvantages of Continuous audit. Under the continuous audit, the work of the auditor becomes mechanical and auditor’s frequent visit may also lead to monotony in work This type of audit is essential to compile accounts on time. Regularity Of Staffs. Because the auditor has to devote more time to this audit Continuous audit or a detailed audit is an audit which involves a detailed examination of books of account at regular intervals i.e. Expensive :-Continuous audit is more expensive as compared to other kinds of audit. If the accounts were checked after the year by the […]. 1. 2. Disadvantages of Continuous Audit. Continuous audit involves heavy expenditure.The management has essay disadvantages of continuous audit to pay high fees to the auditor, as the audit is performed throughout the year 2. 6. Disadvantages of Continuous audit. I. Disadvantages Of Continuous Audit Main disadvantages or limitations of continuous audit can be expressed as follows: 1. This will help to relieve the pressures on staff that arise for many audit firms during the first few months of each year. one month or three months DISADVANTAGES OF CONTINUOUS AUDIT 1. Therefore, a small concern cannot afford the high cost of conducting such audit Meaning, Advantages And Disadvantages Of Continuous Audit Continuous Audit Continuous audit or a detailed audit is an audit which involves a detailed examination of books of account at regular intervals i.e. 2. Not Suitable For Small Business. Read this lesson to learn more about continuous auditing, how it differs from traditional auditing, and the advantages and. • Challenges and opportunities related to continuous auditing. At the end of each visit, important balances should be noted down and the same should be compared at the time of the next visit Audit staff can be kept busy. The auditor's work is spread more evenly throughout the year. Disadvantages of Continuous Audit. If the audit is conducted after the year ended.. But at the same time, there may be a clash of duties among the accounting and audit staff. The auditor visits clients at regular intervals during the financial year and checks each and every transaction. Not Suitable For Small Business. Extra cost: Testing involves the extra cost to the organization which is considered a burden The benefits of continuous improvement include increased efficiency, improved customer satisfaction and added employee engagement. A continuous audit is not of much use to the small firms as its accounts can be audited at the end of the financial year without much loss of time. Alteration of Figures The records and figures in the books of accounts, which have already been checked by the auditor, may be altered after the audit is over. The work of audit continues the whole year. (b) Disadvantages. Thus, there will be enhancement in honesty. Continuous audit is also helpful in distribution of load of work on the staff. 2. The disadvantages of continuous improvement lie in the tendency to adopt a limited program of incremental change rather than encouraging and rewarding innovation Here only some advantages and disadvantages and the importance of performance management system has been listed. Audit report without delay: In case adoption of continuous audit, major part of the audit work gets completed during running of the year itself Disadvantages (Demerits) of continuous audit: The following are the disadvantages of continuous audit: (i) High Cost: As continuous audit is conducted throughout the year the organization has to give huge remuneration to the auditor. Disadvantages Of Continuous Audit Main disadvantages or limitations of continuous audit can be expressed as follows: 1. In spite of the above-mentioned. • Areas where continuous auditing can be applied by the internal audit activity. It is expensive also. Disadvantages Of Continuous Audit Main disadvantages or limitations of continuous audit can be expressed as follows: 1. Inconvenience Disadvantages (Demerits) of continuous audit: The following are the disadvantages of continuous audit: (i) High Cost: As continuous audit is conducted throughout the year the organization has to give huge remuneration to the auditor. A business where the continuous audit is applicable: Businesses are shifting over to a continuous approach to auditing because, quite simply, it is more effective Advantages of continuous audit (1) As the auditor visits his clients after a month or so but at regular intervals, a detailed, close and exhaustive checking can be possible. Frequent visit of audit staff is likely to establish an unhealthy relationship between the audit and the client’s staff. Continuous audit implies a detailed examination of all the transactions by auditor continuously throughout the year. Honesty of staff: In case where continuous audit is adopted, the staff members who commit array will work carefully on the other hand they fear to commit frauds. The auditor visits clients at regular intervals during the financial year and checks each and every transaction. Continous Audit. Bayt.com is the leading job site in the Middle East and North Africa, connecting job seekers with employers looking to hire. 1. It is inconvenient to the client because of frequent visit of the auditor. The audit staff can easily make the audit program according the time required. • The implications for internal auditing and the CAE and for management. Early Location of Errors and Frauds In the Continuous Audit, the audit visit the clients after a short period. Not Suitable For Small Business. Thus, there will be enhancement in honesty. Continuous audit is not suitable for small business firms having less numbers of financial transaction. Therefore, a small concern cannot afford the high cost of conducting such audit ISCA-Chapter 6 -Disadvantages of Continuous Audit Techniques. Elimination of Waste Advantages of Continuous Audit 1.

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