Disadvantages Of Continuous Audit

Accounting , Business
Main disadvantages or limitations of continuous audit can be expressed as follows:

1. Not Suitable For Small Business

One of the major drawbacks of continuous audit is that it is not suitable for small business firms having less numbers of financial transaction.

2. Inconvenience

It may disturb the working environment of the organization because of the frequent surprise visits of audit staffs. So, it is inconvenience system of audit.

3. High Expenditure

Continuous audit is very expensive form of audit because company has to pay high amount of audit fee frequently.
disadvantages continuous audit
4. Chance Of Alteration

There exists the chance of alteration of accounting figures after checking by the auditor. Alteration may be happened intentionally or unknowingly.
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5. Increased Dependency

Because of frequent auditing, client's staff becomes more dependent upon auditor's staff for simple problems and errors.

6. Staff Intimacy

Continuous audit establishes intimacy among the staff and auditor. This intimacy may lead to frauds.
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Advantages Of Continuous Audit

Accounting , Education
Main advantages or merits of continuous audit can be pointed out as follows:

1. Quick Detection Of Errors

In continuous audit, books of accounts are checked and verified at regular interval throughout the financial year. It helps to locate accounting errors and frauds very quickly. Early detection of errors helps to rectify them sooner.

2. Useful For Large Organization

Continuous audit is very useful for large business organizations having the large number of financial transactions.

3. Quick Presentation Of Accounts

With the help of continuous audit, books of accounts can be examined and verified quickly. So, final audit report can be presented sooner.
advantages continuous audit
4. Avoids Missing Entries

Continuous audit helps to maintain proper and up-to-date records of every financial transaction. So, there will be no missing entries.
               
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5. Regularity Of Staffs

Continuous audit gives moral pressure to the accounting staffs. They become regular because of regular visit of the auditor. It also motivates them to maintain proper accounts.

6. Elimination of Waste

Wastage and inefficiencies can be eliminated with the help of continuous audit. This helps to increase production and profit of the firm.
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Advantages Of Audit Note Book

Accounting , Business
Some of the notable advantages or merits of audit note book can be pointed out as follows:

1. Helps Preparing Audit Report

Audit note book helps the auditor to prepare final audit report of the business.

2. Future Reference

Audit note book provides past business information to the audit staff. So, it can be used as future reference.

3. Helps New Auditor

Audit note book records all the weakness, errors and difficulties of previous year. So, new auditor can easily understand the complexities of the business.

Audit note book helps the auditor to measure the working efficiency of his/her audit staffs.

5. Legal Evidence

Auditor can present audit note book as legal evidence in the court if he has been accused of negligence or misfeasance.
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Disadvantages Of Audit Program

Accounting , Business
Major drawbacks or disadvantages of audit program can be expressed as follows:

1. Not Suitable For Small Firms

Audit program is not suitable for small business firms having less volume of transaction. 

2. Lack Of Flexibility

Audit program lacks flexibility due to the rigidness.

3. Harasses To Staffs

Audit work should be completed within the given time by following the instructions and procedures provided in the audit program. So, it harasses to the employees.

Audit work is performed according to the audit program. Employees cannot work according to their skills and experience. They cannot give any suggestion to improve the work. So, it lacks initiative.

5. Unsuitability

Audit program is design according to the size and nature of the business. So, audit program of one business firm may not be suitable for other business organizations.
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Advantages Of Audit Program

Main advantages or benefits of audit program can be highlighted as follows:

1. Proper Supervision And Control

Properly developed audit program helps the auditor to know the progress of work and judge the efficiency of staffs. So, audit work can be properly supervised and controlled.

2. Time And Labor Saving

Audit work is performed on the basis of guidelines and procedures included in the audit program. Works can be performed smoothly without any confusion or difficulties. So, audit program helps to save time and effort. 

3. Proper Distribution Of Work

It helps to distribute the audit work among the staffs according to their knowledge, skills and experience. It increases the working efficiency of the employees.

4. Maintaining Uniformity

It helps to maintain uniformity of the audit work.

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5. To Maintain Continuity

Audit program includes complete audit procedures and guidelines. So, audit work will not be affected in the absence of any staff. New staff can easily handle the job.

6. Proof In The Court

Audit program is a legal document and auditor can present it in the court if needed.
advantages audit program

7. Future Reference

It can be used for future reference also.

8. Detection Of Error

Audit Program detects errors occurred in the audit process and helps the auditor to prevent such errors.

9. Suitable For Large Business

Audit program is useful and suitable for large business houses with large volume of transactions.
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Advantages Of Auditing

Accounting , Business
Main advantages or benefits of auditing can be highlighted as follows:

1. Detection And Prevention Of  Errors

Auditing identifies accounting errors and frauds in the books of account and helps to prevent such errors and weakness in the accounting process.

2. Helpful In Obtaining Loan

Audited reports of previous period are required to obtain loan from banks and other financial institution. So, audit is helpful in obtaining business loan.

3. Accessing Tax Liabilities

Audited reports are easily accepted by tax authorities. So, audit is useful to access tax.

4. Maintenance Of Account

Regular auditing gives moral pressure to the employees of the accounting department. It helps proper maintenance of books of accounting. So, audit is very helpful for up-to-date accounting.

5. Increase Goodwill

Audit helps to increase goodwill of the firm. It also helps to increase public image.
advantages of auditing
6. Easy Comparison

Auditing facilitates comparison of accounts of different periods which helps the management to know the current position of the business.

7. Increase Operational Efficiency

Valuable suggestions and instructions provided by the auditor helps to increase operational efficiency of the business.

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8. Helpful In Future Planning

Audit helps the management to make future plans and policies. Past audited statements are useful in planning and decision making.

9. True Profit Or Loss

Auditing helps to disclose true profit or loss of the business by which the management and other users can know the  financial position of  business.

10. Claim Settlement 

Audit helps to settle claims (retirement or death) among business partners.
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