Monday, 19 September 2011

Difference between continuous audit and interim audit

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.

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