Question

the disadvantage of audit plan

Answer 1

An audit plan is required to ensure that all the parts of the audit process are operating efficiently. It is also used to check that the audit is moving in the desired direction as per the pre-determined plan. It is also seen that there is coordination from all quarters in implementation of the same. Although audit plan is formed by giving vital inputs so that there is no loophole in the process, still there are some disadvantages which one cannot be eliminated from the process.

Some of the disadvantages of audit plan are as follows:

1) The audit plan follows some standard rules and guidelines due to which audit staffs are not able to work to their fullest. Although the staffs have more abilities and talents than is required, still they are not able to perform well and has to stay within the guidelines of the plan. Hence audit plan follows a rigid approach which if followed strictly is not suitable for the work process of as the staffs may get no opportunity to showcase their talents and abilities.

2) The plan follows an automated plan which lowers the responsibility of the audit staff which may cause their work procedure to be monotonous in future. Thus the audit staff are hardly able to provide any improvements to the process which lowers future effectiveness of the whole process.Thus the audit plan causes management to overlook the talents and abilities of the staff which decrease their effectiveness in future in their work process.

3) The plan and procedure prepared for a particular client may vary from one client to another. Thus it may not be compatiable for one client as against another. This may hamper relation with client and staff may feel improper to participate each time a new audit plan is formed as it varies from standard audit guidelines. Hence the audit plan is highly incompatible in respect to different clients.

4) More amount of time and resource is spent on updation of audit plans and procedures within a short span of time usually a year so that it is not outdated and ineffective. This is done to remain in confirmity with the current and changing economic and business environmental conditions.