Continuous audit id also called detail audit or running audit. It involves the detail examination of books of accounts at regular intervals for example after one month or three months. The auditor visits his client at regular or irregular intervals during the financial year and every transaction. At the end of auditor checks the remaining transaction which have not been checked, the profit and loss account and the balance sheet.
Final audits is also called periodical audit, balance sheet audit or completed audit. It is one which is started at the close of the financial or trading period when all accounts have been balanced and pared.
There are some advantages of continuous audit over the final audit or balance sheet audit. The checking can be performed in greater detail. The work of writing up the account is kept up to date, as a result of frequent attendances of the auditors. Mistakes can be discovered and rectified at an early date. The presentation of final accounts is not delayed as very little work would be left by the auditors to be done at the close of the period. The opportunities for fraud are considerably lessened on account of the frequent visits by the auditors.
Final audits is also called periodical audit, balance sheet audit or completed audit. It is one which is started at the close of the financial or trading period when all accounts have been balanced and pared.
There are some advantages of continuous audit over the final audit or balance sheet audit. The checking can be performed in greater detail. The work of writing up the account is kept up to date, as a result of frequent attendances of the auditors. Mistakes can be discovered and rectified at an early date. The presentation of final accounts is not delayed as very little work would be left by the auditors to be done at the close of the period. The opportunities for fraud are considerably lessened on account of the frequent visits by the auditors.