Chapter: 11th Auditing : Chapter 2 and 3 : Classifications of Audit
Differences Between Continuous Audit and Interim Audit
Differences Between Continuous Audit
and Interim Audit
Continuous Audit Vs Interim Audit
1. Objective
Continuous Audit: The main object is to detect
errors and frauds.
Interim
Audit: The main object is to determine the profit or loss for the purpose of
declaration of dividend to shareholders.
2. Duration of Audit
Continuous Audit: Audit is conducted up to any
date according to the convenience of the auditor and his clients.
Interim
Audit: Audit work is done up to a definite date according to the instructions
of the client.
3. Preparation of Trial Balance
Continuous Audit: Trial balance is not prepared
but the totals of certain accounts are noted.
Interim
Audit: Trial Balance must be prepared at the end of the period.
4. Verification of assets and liabilities
Continuous Audit: Assets and liabilities are verified
after the preparation of the balance sheet at the end of the accounting year.
Interim
Audit: Assets and liabilities are verified when the audit work is conducted.
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