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
main areas contained in a private audit

techniques of vouching

You are auditing the accounts receivable balance of a cable television provider. Individual accounts receivables tend to be similar in amount to each other and cover one or two mon

What is the role of the auditor, and what are the key duties the auditor must carry out? Role of the Auditor In modern commercial environmental it is desirable that bus

Determinants of amount of audit evidence

Advocates The statutory provision regulating the handling of client’s monies is covered in the advocate's act. Principle of the rules: To require a lawyer to keep

Co-operative Societies and Parastatals Co-operative Societies An audit in this case is carried out as a general audit except you should notice that the auditor is appoi

IAS 28 - Audit Process IAS 28 applies in accounting for investments in associates, except those held through: Venture capital organisations, or Mutual funds,

Summary of IAS 2 Inventories are measured at the lower of cost and net realizable value. Entire realizable price is the calculated selling price in the regular course of busin

The Accounting System ISA 400 Risk Assessment and Internal Control accounting system are the sequence of tasks and records of an entity by which transactions are procedure as a