The audit process is made expensive especially for small firms, hence it may only be suitable for large companies with many transactions.
Interim audit may disrupt client operations since the auditor has to be attended to by client staff for information.
iii) Alteration of entries
Client staff may alter already audited figures before the year end.
iv) Unanswered questions
Questions posed at the interim audit stage may remain unanswered and this may distort final opinion as answers obtained later may not be of substance.
v) Inadequate diligence
Due to the fact that final audit will be performed anyway, the interim audit may not be done with the seriousness it deserves.
Interim audits entail a lot of note-taking e.g. of interim balance carried forward or even budgeted performance figures to be used to facilitate final audit.
vii) Dependency Problem
Client staff may be dependent upon the interim auditing to solve their accounting problems which may compromise the objectivity of audit staff.