Question

What do you mean by continuous Audit? Distinguish between continuous Audit and Annual Audit.​

Answer 1

Explanation:

Continuous audit is an audit, which is conducted continuously throughout the year at regular or irregular intervals during the financial year. Periodical audit is an audit, which commences after closing of accounts and preparation of final accounts and is carried out continuously till the conclusion of audit.

Continuous audit is an audit, which is conducted continuously throughout the year at regular or irregular intervals during the financial year. Periodical audit is an audit, which commences after closing of accounts and preparation of final accounts and is carried out continuously till the conclusion of audit.

Answer 2

An audit involves an "independent examination" of any entity's financial information regardless of its size/legal form, whether or not profit-oriented, with the objective of expressing their opinion.

Explanation:

A continuous audit is an "internal process" which examines accounting practices, compliance,  risk controls, business procedures, & information technology systems, on a continual basis. Continuous audits are generally  technology-driven & designed to automate error checking & data verification in "real-time"

• Continuous auditing necessitates the on-going assessment of "accounting practices & risk controls".
• This auditing practice facilitates in continually assessing the effectiveness of controls.
• Continuous audits are often used to monitor the effectiveness of new procedures.

The annual audit is only an audit of the financial reports and accounts of the company. The auditor examines the accurateness of numbers as well as processes & informs you whether internal control measures are required to help protect your business from fraud.

• The auditor returns one year after the conclusion of the report. For small businesses, a final audit is particularly important.
• After the entries are completed and recorded, the final audit is completed.
• Efficient preparation is not carried out in the case of final audits, because reports are prepared late.

To know more

______ audits are typically used as part of process management to ...

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