Distinguish, differentiate, compare and explain what is the difference between Continuous audit and Interim audit.
Comparison and Difference between Continuous audit and Interim audit
1. A continuous audit or a detailed audit as it is sometimes called is an audit which involves a detailed examination of the of account at regular intervals of say one month or three months. Some writers opine that an audit which is called in between two annual audits with a view to find out interim profit to enable the company to declare an interim dividend should be called interim audit.
2. The continuous audit is carried on up to any date according to the convenience of the auditor and his client. An interim audit is up to a definite date according to the instructions of the client.
3. In the continuous audit, the verification of assets and liabilities is done after the balance sheet has been prepared at the end of the accounting period. In an interim audit, the assets and liabilities are verified when such an audit is conducted.
4. In the Continuous audit, no trial balance is prepared though the totals of certain accounts may be noted. In an interim audit, the trial balance has to be prepared or checked.