For a club currency checkout one circuit should tell you the pilot fits one of 3 groups.
1) Satisfactory flying skills, return to stand, pilot released to fly on his/her own
2) Unsatisfactory flying skills, continue with flight as dual instruction until satisfactory level achieved
3) Gross lack of flying skills. Terminate flight and sit down with CFI to discuss a training plan.
Instructors who are not capable of making the above determination after seeing start, taxi, runup, takeoff, circuit and landing; should not be doing checkouts.