Difference between balance sheet audit and continuous audit
Answers
Answer:
CONTINUOUS Nature: Here the auditor or his staff is, constantly engaged in checking the accounts during the whole period therefore, throughout the financial year.
Thoroughness: It involves detailed and exhaustive checking of accounts while balance sheet audit involves limited review in which all the balance sheet items are verified.
Suitability: It is most suited to big organisations and entities where internal controls are not effect effective.
Verification of assets: Cash and inventory records are verified by the auditor at every visit.
Popularity: However it used widely in India, England and other European countries.
Balance Sheet Audit
Nature: Here the audit takes place only at the end of financial year.
Thoroughness: Tests are applied only on those items of profit and loss account which are directly related to the assets and on income/expenditure attributable to assets/liabilities.
Suitability: On the other hand, balance sheet audit is most suitable for organisations which have an efficient system of internal control.
Verification of assets: Full verification of assets and liabilities is done at the end of the financial year.
Popularity: It is more popular in America.
Answer:
Explanation:
It focuses on substantive procedures. Basically interim audit is the audit which is carried out; even during the final audit is in process. Interim audit can also be considered as the audit of quarterly statements, whereas the audit of annual statements is known as final audit.