The Limitations of Internal Audit are given below:
Despite these benefits, internabaudit has some limitations. (1) The installation and operation of internal audit involve extra expenditure which cannot be met by many small concerns. As a matter of fact, internal audit is confined to larger business. (2) Internal audit becomes as better as it is used by managers.
There are occasions when managers cannot accept the finding of internal audit and take consequent actions. This defect arises mainly from the deficiencies of the internal auditing staff.
Because of their t advisory staff position, auditing staff. Because of their advisory staff position, unfamiliarity with operating aspects of work and accounting bias, internal auditors fail to be of any real help to the manager in many cases.
ADVERTISEMENTS:
Internal audit becomes vibrant in action when it is entrusted to a centralised control unit. In the field of control, the centralised control unit has made its debut in recent years for elevating the system of internal audit to a new height and supplying greater and wider control of information to managers.
Integrated data processing through computers has brought about revolutionary changes in the communication system and made the centralized control unit indispensable for large enterprises.