| Nature of difference |
Interim Audit |
Continuous Audit |
| 1. Object |
The object of interim audit is to ascertain and check the profit or loss for a given period. |
The object of continuous is to present the correct and fair financial statement of the concern to the shareholders. |
| 2. Period |
In interim audit accounting records are examined up to a certain date. |
In the process of continuous audit the accounts are examined by the auditor during the whole year. |
| 3. Scope |
In interim audit a detailed and extensive checking of book of accounts is not done. |
In continuous audit detailed and extensive checking of book of accounts is done. |
| 4. Trial balance |
In interim audit the trial balance must be prepared and checked at the time of such audit. |
In continuous audit the trial balance is not prepared at intervals but it must be prepared at the close of the year. |
| 5. Verification |
In interim audit the verification is undertaken at the time of such audit. |
In continuous audit verification of assets and liabilities is undertaken at the close of financial year. |
| 6. Report |
In case of interim audit the auditor report is submitted at the time of such audit. |
In continuous audit the auditor’s report is submitted at the end of financial year. |
| 7. Application |
Interim audit is employed where the interim results are required. |
Continuous audit is employed in large-scale business where monthly audited accounts are required. |
| 8. Cost audit |
Interim audit is less expensive as compared to continuous but more expensive as compare to final audit. |
In case of continuous audit more time is spent by the auditor for detailed examination therefore it is more expensive. |
| 9. Qualification |
In case of interim audit the auditor must be a chartered accountant. |
In case of continuous audit the auditor must be a chartered accountant. |
| 10. Status |
Interim audit is done by an independent and professional auditor. |
Continuous audit is done by an independent and professional auditor. |
| 11. Responsibility |
In the interim audit auditor is responsible to shareholders. |
In continuous audit the auditor is responsible to shareholder. |
