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Chapter: 11th Auditing : Chapter 2 and 3 : Classifications of Audit

Differences Between Continuous Audit and Annual Audit

Auditing : Classifications of Audit : Differences Between Continuous Audit and Annual Audit

Differences Between Continuous Audit and Annual Audit



 

Continuous Audit Vs Annual Audit

 

1. Frequency of Auditors Visit

Continuous Audit: In case of Continuous Audit, auditor frequently visits and checks the accounts of the business.

Annual Audit: In case of Annual Audit, auditor visits the business only once after the close of the year.

 

2. Conduct of Audit

Continuous Audit: Audit is conducted periodically throughout the financial year.

Annual Audit: Audit is commenced only after the close of the financial year.

 

3. Regularity of Audit Staff

Continuous Audit: Client’s staff becomes more efficient and regular.

Annual Audit: It may not be so because client’s staff knows well that audit work will start only after the close of financial year.

 

4. Verification of Transactions

Continuous Audit: Each and every transaction is verified immediately after it is recorded.

Annual Audit: Audit staff checks and verifies the transactions only after the close of the year.

 

5. Cost involved in the Audit

Continuous Audit: It is very much expensive

Annual Audit: It is less expensive and economical.

 

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11th Auditing : Chapter 2 and 3 : Classifications of Audit : Differences Between Continuous Audit and Annual Audit |


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