Disadvantages of Internal Check
Internal Check is an arrangement of staff duties of a business in such a way that work is automatically checked by the next staff while performing their duties. It is a system or method introduced with defined instructions given to staff as to their sphere of work with a view to controlling and verification of their work and also maintenance of accurate records as the ultimate aim.
System Internal check system is useful to every stakeholder of the business even though it has some disadvantages which are as follows:
(a) Under internal check system, every staff wants to complete her/his work in time. So, s/he performs work in a hurry which leads errors.
(b) Under internal check system, once work is checked by another staff, the latter detects errors and frauds. So, there are chances of conflict between or among the staffs.
(c) Staffs may form a group for personal benefits which leads to delay in work and increases errors and frauds.
(d) Small organizations cannot use internal check system because it needs more staffs which increase the cost.