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Define And Distinguish Continuous And Interim Audit?

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A continuous audit is one of where the auditor's staff is occupied continuously on the audit of accounts the whole year round attends at periodical interview, sat monthly or quarterly and where the audit is started during financial year.

It is kind of audit which is conducted before the final audit. In the opinion of some writers, this is that audit which is conducted between the two annual audits with a view to find out interim profit to enable the company to declare an interim dividend.

In case of continuous audit, the work of audit is carried on up to any date according to the convenience of the auditor and his client while in case of interim audit; the work of audit is up to definite date. In case of continuous audit the verification of assets and liabilities is done after the balance sheet has been prepared while in case of interim audit, the assets and liabilities are verified when such audit is conducted. In case of continuous audit, trial balance may not prepare though the total of certain accounts may be noted by the auditors, on the other hand in case of interim audit trail balance must be prepared or checked.

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