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. |