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Sunday, February 12, 2012

Disadvantages Of Internal Check System

Internal check system is useful to every stakeholder of the business even though it has some disadvantages which are as follows:

1. Under internal check system, every staff wants to complete her/his work in time. So, s/he performs work in hurry which leads errors.

2. Under internal check system, once work is checked by the another staff, the latter detects errors and frauds. So, there are chances of conflict between or among the staffs.

3. Staffs may form a group for personal benefits which leads to delay in work and increases errors and frauds.

4. Small organizations cannot use internal check system because it needs more staffs which increases the cost.