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. |