Question

1. What is Continuous Audit? Mention the type of business where Continuous audit is applicable.(5+5) marks
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Answer 1

Answer:

Characteristics of Continuous Audit

• The auditor visits the business regularly.

• It is conducted in the large business concern.

• It is conducted through the year.

• Throughout checking is possible.

• It is an expensive audit.

• Audit report is not prerequisite.

• It is used to cover the deficiencies of the business.

• Surprise visits are also possible by the auditor.

• The manager can fix the time.

Answer 2

$\huge\mathfrak\pink{Answer!}$

Continuous auditing is an automatic method used to perform auditing activities, such as control and risk assessments, on a more frequent basis

Business where continuous audit is applicable:

* Where it is desired to present the account just after the close of the financial year, as in the case of a bank. ... * Where the statements of accounts is required to be presented to the management after every month or quarter.

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