Accountancy, asked by anitamarneanita1323, 9 months ago

Distinguish between interim audit and final audit

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Answered by namitabrahmaboro
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Answered by samueltriek
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Explanation:

Most auditors will choose to perform their audit work during the final audit. ... In such a situation, the auditors would only focus on the remaining last three months or six months from an interim audit they carried out before. There is no difference between the audit procedures of the interim audit and final audit.

Final Audit is also known as periodical audit, annual audit or complete audit. This type of audit is usually done at the end of the financial year when all the accounts have been balanced and Trading and Profit and Loss Account and the Balance Sheet have been prepared. In the case of such an audit the auditor visits his client only once a year and goes on checking the accounts until the audit work for whole of the year is completed. Final Audit ensures smooth flow of work, is economical and there is no possibility of friendly-ties between the audits staff and the clients staff.

An audit conducted in between two annual audits is called Interim Audit. Its object is to enable the company to declare an interim dividend. Interim audit involves a complete audit of accounts for a part of the year i.e. from the date of the last Balance Sheet to the date of the interim accounting period. interim audit involves a complete audit of accounts prepared and closed for a part of the year to the date of a set of interim accounts. With interim audit it becomes easy to complete the annual audit soon.

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