Difference between continuos audit and interim audit
Answers
The difference can be judged by the following facts :
1. Fee :-
Interim audit : The fee of interim audit is low.
Continuous audit : The fee of continuous audit is high.
2. Legal Position :-
Interim audit : The interim audit is not compulsory by law.
Continuous audit : Continuous audit is compulsory by law.
3. Objectives :-
Interim audit : Interim audit checks and determines the profit or loss for the particular period.
Continuous audit : Continuous audit shows the true and fair view of the financial statement.
4. Scale Of Business :-
Interim audit : Interim audit is conducted for the both large scale and small scale business.
Continuous audit : Continuous audit is conducted only for large scale business.
5. Scope :-
Interim audit : In interim audit there is no detailed checking of accounts.
Continuous audit : In continuous audit there is a detailed checking of accounting records.
6. Verification :-
Interim audit : Verification of assets and liabilities are done when interim audit is conducted.
Continuous audit : In continuous audit it is done when balance sheet is prepared.
7. Period Of Audit :-
Interim audit : Interim audit period is upto the particular date.
Continuous audit : Continuous audit period is for one whole year.
8. Interest Of The Third Party :-
Interim audit : In case of interim audit third party has no interest.
Continuous audit : In case of continuous audit third party may be interested.
9. Trial Balance :-
Interim audit : Preparation of trial balance is compulsory in interim audit.
Continuous audit : It is not compulsory in continuous audit.
10. Report :-
Interim audit : The report of interim audit is presented at the end of the interim audit.
Continuous audit : Continuous audit report is presented at the end of the accounting period.