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Monday, 19 September 2011

Difference between continuous audit and final audit

We can differentiate the Final Audit and Continuous Audit by the following facts :

1. Period :-
Final audit : Final audit is done at the end of the year.
Continuous audit : Continuous audit remains continue for whole year.

2. Scope :-
Final audit : In case of final audit detailed checking is not made as compared to continuous audit.
Continuous audit : In case of continuous audit accounts are checked in detail.

3. Chances Of Fraud :-
Final audit : In case of final accounts chances of fraud and errors high.
Continuous audit : In continuous audit chances of errors and frauds are reduced.

4. Visits :-
Final audit : In final audit, the auditor makes one visit in a year.
Continuous audit : In case of continuous audit, the auditor makes many visits.

5. Dividend :-
Final audit : Due to final audit only final dividend is declared.
Continuous audit : To declare the interim dividend and final dividend, continuous audit is very useful.

6. Scale Of Business :-
Final audit : Final audit is very desirable for small business.
Continuous audit : Continuous audit is desirable for large size of business.

7. Checking :-
Final audit :. In case of final audit there is a less check on the employees.
Continuous audit : Continuous audit has strong check on the employees.

8. Fee :-
Final audit : Final audit fee is low as compared to the continuous audit.
Continuous audit : Fee of continuous audit is high as compared to the final audit.

9. Time Of Conduct :-
Final audit : Final audit is conducted after the completion of entries and record.
Continuous audit : Continuous audit can be conducted when entries and records are being prepared.

10. Suitability :-
Final audit : In case of effective control system final audit may be conducted.
Continuous audit : In case of poor internal control system continuous audit system is suitable.

11. Proper Planing :-
Final audit : In case of final audit effective planning is not made because accounts are prepared late.
Continuous audit : In case of continuous audit planning is effective because accounts are prepared in time.

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