Distinguish between Interim and Final Audit.
Difference between Interim and Final Audit:
Final Audit is also known as periodical audit, annual audit or complete audit. This type of audit is usually done at the end of the financial year when all the accounts have been balanced and Trading and Profit and Loss Account and the Balance Sheet have been prepared. In the case of such an audit the auditor visits his client only once a year and goes on checking the accounts until the audit work for whole of the year is completed. Final Audit ensures smooth flow of work, is economical and there is no possibility of friendly-ties between the audits staff and the clients staff.
An audit conducted in between two annual audits is called Interim Audit. Its object is to enable the company to declare an interim dividend. Interim audit involves a complete audit of accounts for a part of the year i.e. from the date of the last Balance Sheet to the date of the interim accounting period. interim audit involves a complete audit of accounts prepared and closed for a part of the year to the date of a set of interim accounts. With interim audit it becomes easy to complete the annual audit soon.