| Nature of Difference |
Continuous Audit |
Final Audit |
| 1. Object |
The object of continuous is to present the correct and fair financial statement of the concern to the shareholders. |
In final audit the book of accounts are examined by the auditor whether they shown true picture or not at the end of year. |
| 2. Period |
In the process of continuous audit the accounts are examined by the auditor during the whole year. |
In final audit auditor attends only at the end of the financial year. |
| 3. Scope
|
In continuous audit detailed and extensive checking of book of accounts is done. |
In final audit the work is not done in so much detail. |
| 4. Trial balance |
In continuous audit the trial balance is not prepared at intervals it must be prepared at the close of the year. |
In final audit the trial balance must be prepared. Before the audit work is started. |
| 5. Verification
|
In continuous audit verification of assets and liabilities is undertaken at the close of financial year. |
In final audit the verification is undertaken at the close of the financial year. |
| 6. Report |
In continuous audit the auditor’s report is submitted at the end of financial year. |
In case of final audit report is submitted at the end of his work. |
| 7. Application |
Continuous audit is employed in large-scale business where monthly audited accounts are required. |
Final audit is applicable where business is small and owner themselves manages the work. |
| 8. Cost of audit |
In case of continuous audit more time is spent by the auditor for detailed examination therefore it is more expensive. |
In final audit less time is consumed by the auditor for audit work. Therefore, it is least expensive as compare to final audit. |
| 9. Qualification |
In case of continuous audit the auditor must be a chartered accountant. |
In case of final audit the auditor must be a chartered accountant. |
| 10. Status |
Continuous audit is done by an independent and professional auditor. |
Final audit is done by an independent and professional auditor. |
| 11. Responsibility |
In continuous audit the auditor is responsible to shareholder. |
Auditor is responsible to the shareholder. |
| 12. Suitability |
Continuous audit is suitable for big size business organization or where audited monthly reports are required. |
Final audit is suitable for medium size business or where early audited accounts are not required. |
| 13. Intimacy with staff
|
Under continuous audit there are lots of chances of friendly relations with accounting and audited staff because they work side by side for the whole year. |
Under the final audit there are less s chances of friendly relations because it is conducted after the close of the financial year. |
| 14. Moral check |
Continuous audit put more moral check because it is continue throughout the financial year. |
Final audit put less moral check on employees because it is conducted after the close of financial year. |
| 15. Interim dividend |
In case of continuous audit interim audited accounts can be prepared and interim dividend can be declared. |
Under the final audit interim audited account cannot be prepared therefore interim dividend cannot be declared. |
| 16. Rectification of errors |
Under continuous audit errors are rectified at an early stage. |
Under final audit error are detected after the close of financial year. |
| 17. Internal control |
Continuous audit is conducted even there is effective or poor internal control system is applied. |
In case of final audit test base method is adopted if there is strong internal control system. |
| 18. Cost of audit |
Continuous audit is expensive because auditor spent more time for its completion. |
Final audit is less expensive because it is completed in lesser time period. |