Difference between Interim Audit and Continuous Audit

Difference between Interim Audit and Continuous Audit

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.

 

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