Mistakes and frauds are discovered easily and quickly as the auditor checks the accounts at regular intervals and in details. Since the auditors remains more in touch with the business then auditor is in a position to know the technical details of it. The more auditors know about it, the better they can give valuable suggestions to their client. As most of the checking has been already performed during the course of the year, the final audited accounts can be presented to the shareholders soon after the closing of the financial year at the general meeting.
In continuous audit, the auditor visits, auditor visits the client office at regular intervals, the clerk will be very regular in keeping accounts up to date. They will see that there is no inaccuracy or fraud as it would be detected by the auditors at his next visit. If auditor pays surprise visits, it will have considerable moral check on the clerks preparing the accounts as they do not know when the auditor may pay a visit and check the accounts.
The auditor having more time at his disposal can check the accounts with greater attention and in detail. Where the director of a company intends to declare an interim dividend, continuous audit will help in preparation of interim accounts without much delay.
In continuous audit, the auditor visits, auditor visits the client office at regular intervals, the clerk will be very regular in keeping accounts up to date. They will see that there is no inaccuracy or fraud as it would be detected by the auditors at his next visit. If auditor pays surprise visits, it will have considerable moral check on the clerks preparing the accounts as they do not know when the auditor may pay a visit and check the accounts.
The auditor having more time at his disposal can check the accounts with greater attention and in detail. Where the director of a company intends to declare an interim dividend, continuous audit will help in preparation of interim accounts without much delay.