Negatives Of Auditing
Auditing is a must needed process to be done in every organization to verify all the financial documents are correct and it is usually done by the onsite auditors. Though it has many advantages, it has some negatives too. Let us take a look at those disadvantages and how it makes an impact on the organization and the employees working there. Auditing can be done to the own business like trading with this trading software.
- Extra cost:
The auditors need a very huge amount of the organization to do the audit and they will not work for the amount they get. The extra cost they want is really a burden to the organization, especially for the small enterprises. This is the main disadvantage of auditing. The auditors should have a conversation with the employees in the company and try to get to know about the company activities and they should work more with concentration. Because the assurance they give to the company leads to many wrong conclusions and this makes a great bad impact on the financial position of the company. This has to be avoided by the auditors.
The company will act based on the conclusion statements given by the auditors whether it may be profit sharing. So the auditors should reveal the documents in a perfect manner. Otherwise, the employees may not get the correct profit share from the company. The sharing of profits mainly depends on the final statement given by the auditors. So, it has to be an accurate one.
- Employee’s opinions:
Since auditing is done only by the auditors, the employees are not supposed to give their opinions and suggestions through the statements provided by the auditors are not right. This makes the employees feel harassed and very disappointed.
The rules and regulations of the company will change day by day. But the policies of the organization will never change and it will be stable always.
- Chances of crime:
Since the statements given by the auditors after finishing the auditing procedures are very confidential, the auditors will try to do some fraudulent activities and crime.
- Small enterprise:
There is no need to do an audit for the small enterprises since the transactions are not much for those organizations.
- No guarantee:
The auditing will never provide accurate data to the organizations. The data the auditors give to the companies have no guarantee that they are accurate results.
Thus conclude that auditing is an important activity to be done in every organization unless and until the auditors work with concentration and provide correct statements at the end of the activity.