- The time consuming and expensive nature of the audit process.
- 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.
- The risk that auditing itself derives dishonesty as suppliers are tempted to falsify records, coaching workers to lie in audit interviews or bribing auditors
- The risk of serious legal and moral compromise if compliance issues are identified by the audit
- The risk of analysis paralysis – gathering more performance information as a substitute for managing performance.
- Potential damage to morale, motivation and supplier relationship
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