Drawbacks for auditing

  1. The time consuming and expensive nature of the audit process.
  2. The limitations of audit information – the quality of information depends on factors such as competence of the auditor, the relevance and flexibility of the audit.
  3. The risk that auditing itself derives dishonesty as suppliers are tempted to falsify records, coaching workers to lie in audit interviews or bribing auditors
  4. The risk of serious legal and moral compromise if compliance issues are identified by the audit
  5. The risk of analysis paralysis – gathering more performance information as a substitute for managing performance.
  6. Potential damage to morale, motivation and supplier relationship
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