Differentiate between Continuous Audit and Interim Audit.
Difference between Continuous Audit and Interim Audit are.
- Work of audit is carried on for the whole of the financial year according to the convenience of the auditor.
- The main object of continuous audit is to find and detect trends and errors.
- Continuous audits causes inconvenience to the staff during the course of audit.
- In continuous audit the auditor is appointed by the owners/shareholders.
- Continuous audit is expensive as compared to interim audit.
- The auditor reports at the close of the financial year when audit is complete.
- Work of interim audit is done for a part of the year therefor the last balance sheet to the interim accounting period.
- The main object of interim audit is to facilitate payment of interim dividend or for same other particular purpose. Interim audit does not cause such inconvenience
- In case of interim audit he auditor is appointed by the management.
- It is less expensive as compared to continuous audit.
- Audit report is submitted by the auditor at the close of the audit.