Question

Which of the following is dis-advantage of Audit programme?

• A. Reduces scope of misunderstanding
• B. Serve as evidence
• C. Against charge of negligence
• D. New era may be overlooked

Answer 1

The correct option is D New era may be overlooked

Disadvantages of Audit program:

1. The audit work conducted becomes too mechanical.
2. Auditors may have covered the whole field but it can not be said with certainty that all the necessary work have been done.
3. It kills the initiative of capable persons assistant can not suggest any improvement in the plan.
4. It needs change every year and if changes not made it may become too rigid in nature.
5. Audit program is suitable only for large audits.

New areas may be overlooked.