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Which are the limitations of an Internal Audit?

Which are the limitations of an Internal Audit?

Answers

Wilfred
• The cost of installing and maintaining an internal audit function is high and in particular for
large companies as they may require highly qualified staff while for small companies the
department may not be justifiable.
• If management ignores the recommendations of internal audit function, members of internal
audit function may be frustrated as errors and frauds may continue being undetected.
• Management may deny the internal audit function its due independence by assigning it
accounting duties or even management responsibilities.
• If company operations are few or has complex technical aspects may limit the proper
functioning of the internal audit function.
• The internal audit department may fail e.g. if it points out problems without giving solutions
or ignoring some departments within the company.
• The internal audit may lack the necessary support from top level management if top
management views the function as not important.
Wilfykil answered the question on April 11, 2019 at 07:53

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