Difference between Interim Audit and Final Audit

Difference between Interim Audit and Final Audit

Nature of difference Interim Audit Final Audit
1.       Object The object of interim audit is to ascertain and check the profit or loss for a given period. 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 interim audit accounting records are examined up to a certain date. In final audit auditor attends only at the end of the financial year.
3.       Scope In interim audit a detailed and extensive checking of book of accounts is not done. In final audit the work is not done in so much detail.
4.       Trial balance In interim audit the trial balance must be prepared and checked at the time of such audit. In final audit the trial balance must be prepared.
5.       Verification In interim audit the verification is undertaken at the time of such audit. In final audit the verification is undertaken at the close of the financial year.
6.       Report In case of interim audit the auditor report is submitted at the time of such audit. In case of final audit report is submitted at the end of his work.
7.       Application Interim audit is employed where the interim results are required. Final audit is applicable where business is small and owner themselves manages the work.
8.       Cost audit Interim audit is less expensive as compared to continuous but more expensive as compare to final audit. 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 interim audit the auditor must be a chartered accountant. In case of final audit the auditor must be a chartered accountant.
10.   Status Interim audit is done by an independent and professional auditor. Final audit is done by an independent and professional auditor.
11.   Responsibility In the interim audit auditor is responsible to shareholders. Auditor is responsible to the shareholder.

 

Leave a Reply

Your email address will not be published. Required fields are marked *