Advantages and disadvantages of a continuous audit, Auditing

Advantages and Disadvantages of a Continuous Audit

Advantages:

  • The regular or continual attendance of the auditor might act as a deterrent to scam;
  • Weaknesses in the client's systems are observed earlier and, when they exist, errors and scam might be discovered more rapidly;
  • It is at times possible to begin the balance sheet work prior to the year end. This will lead to swifter financial reporting;
  • The auditor's work is broadening more evenly all through the year. This will aid to relieve the pressures on staff that occur for many audit firms throughout the first few months of each year.

 

Disadvantages:

  • Audit staff who expends much of their time functioning on one client might find their independence adversely exaggerated;
  • The auditor's common (and at times unexpected) visits might cause trouble to the client;
  • It is possible that figures might be transformed (naively or illegally) after they have been confirmed;
  • It might be found that outstanding points and enquiries raised at one visit are forgotten and not pursued up at a later phase. Strict control is required to make sure that this does not occur mainly where the staffs allocated to the audit have transformed.

 

Posted Date: 12/3/2012 4:49:31 AM | Location : United States







Related Discussions:- Advantages and disadvantages of a continuous audit, Assignment Help, Ask Question on Advantages and disadvantages of a continuous audit, Get Answer, Expert's Help, Advantages and disadvantages of a continuous audit Discussions

Write discussion on Advantages and disadvantages of a continuous audit
Your posts are moderated
Related Questions
what is the impact of judgemental sampling on the quality of a financial report

Verification Procedures - Long-Term Liabilities a) Received a schedule detailing the sums due at the starting of the year, redemptions and additions and the sum due at the yea

Principles of Auditors Procedures i. The financial statements should be prepared on the source of conditions existing on the balance sheet date. ii. The material post balance

what are the things we need to check in statutory audit of bank?

Historic Costs Methods - Long Term Contracts You will notice such this exercise is completely dependent on the company estimating its further costs.  This is wherever the audi

Normal audit risk Indications that an audit is a normal risk audit are: (1) The client having management and staff who are competent and have integrity; (2) Where the client h

The auditors for Weston University are conducting their audit for the fiscal year ended December 31, 2011. Specifically, the audit firm is now focusing on the audit of revenue from

Determinants of amount of audit evidence

Reserves - Audit Process Movements in reserves need disclosure in the balance sheet, the loss and profit account, the director's reports or in the notices to the accounts. The

Blowing the Whistle on Former Partners On St. Patrick's Day in 1992, Chambers Development Company, one of the largest landfill and waste management firms in the United States, a