Disadvantages of Lack of Internal Audit in Businesses
In addition to the benefits of internal audit to businesses, the drawbacks that may arise if there is no internal audit in the enterprise or if the existing internal audit is not used effectively can be listed as follows.
- It causes a loss of money and assets that the business cannot detect immediately.
- It causes the business management to make erroneous and wrong decisions that are difficult to compensate for.
- The idea that there is no control in the business causes errors and fraud among upper management and employees.
- The comfortable environment created by not keeping the business employees under control also causes negativities, such as decreases in the business’s income.
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