In spite of advantages of continuous audit, there are certain drawbacks of such an audit. Figures in the books of accounts which have already been checked by auditors at his previous visit may be altered by dishonest clerk and the frauds may thus be committed. The frequent visits by the auditor may upset the work of client and cause inconvenience to client. As auditors have to devote more time to this type of audit, certainly auditor would charge higher fee than other audit. Hence it is more expensive system of audit.
The audit clerks may lose the threads of work and the queries which auditor wanted to make remain outstanding as there might be a long interval between the two visits. These advantages can also be removed.
No alteration should be allowed to be made after transactions have been checked by the auditors, without his permission. If any alteration is to be made it should be done by means of a rectifying entry. Checking of a book should be completed as far as possible at each visit. However it this is not possible the auditor should check the transaction up to a particular date and make note of it in his diary.
The audit clerks may lose the threads of work and the queries which auditor wanted to make remain outstanding as there might be a long interval between the two visits. These advantages can also be removed.
No alteration should be allowed to be made after transactions have been checked by the auditors, without his permission. If any alteration is to be made it should be done by means of a rectifying entry. Checking of a book should be completed as far as possible at each visit. However it this is not possible the auditor should check the transaction up to a particular date and make note of it in his diary.
