DRAWBACKS OF EFt
An EFT may include some disadvantages compared with traditional systems.
Some of the drawbacks are as follows--
1. Concentration of control-
The strength of the internal control structure which occurs by the
dissociation of duties structured management reporting may got reduced.
Due to EFT management relies more and more on computer systems. Like
this placing controls in the hands of less individuals thus potentially
increasing risk. Although computerized controls can reduce the chances for
human errors, but any control deficiency (accidentally) can cause a greater
loss like over payment and over production.
2. Data processing, application, and communication errors- Errors
caused on computer processing & communication systems may result in
transmission of incorrect trading information or reporting of inaccurate
information to management.Failures or application errors or can also
result in significant losses to trading partners.
3. Potential loss of management and audit trails- In special cases
EFT data may not be maintained for a long time. Therefore the
entity may not be provided due to lack of proper consideration of
legal and auditing issues.
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