Interim and final audits, Auditing

Interim and Final Audits

Whereas the split between the systems and balance sheet audits is concerned with thetype of work covered, that between the interim and final audits is concerned with timing. The interim audit will normally take place approximately three-quarters of the way throughout the financial year.

There is an element of similarity between systems/balance sheet work and interim/final audits in as much as the majority of the systems work will be carried out during the interim audit and the majority of the balance-sheet work during the final audit.  However, it will be necessary to complete some systems work during the final audit so that transactions between the time of the interim and final audits do not escape the auditor's attention. Similarly, some substantive testing is very likely to be carried out during the interim (e.g. verifying fixed assets additions to date).

With very small audits, it is sometimes considered unnecessary to carry out an interim audit. This means that, as a matter of convenience, all the audit work will be carried out in a single phase commencing typically, a short time before the year-end and continuing into the post balance sheet period.

At the other extreme, with large companies it is sometimes necessary to carry out more than one interim audit or, alternatively adopt a continuous auditing approach. In the case of a continuous audit the auditor's staff will either make several visits to the client spread throughout the year or, as in the case of very large companies, some of the audit staff will be present at the client's premises virtually all the time.

Posted Date: 12/3/2012 4:47:13 AM | Location : United States

Related Discussions:- Interim and final audits, Assignment Help, Ask Question on Interim and final audits, Get Answer, Expert's Help, Interim and final audits Discussions

Write discussion on Interim and final audits
Your posts are moderated
Related Questions
Basic Elements of a Management Representation Letter Whenever requesting a management representation letter, such the auditor would request which it be addressed to the audi

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

Work Related Health Problems The health of a person working on a specific job in a particular environment may be affected by both. It is valuable to have a clear understanding

what is statutory audit and private audit

Selection of a Sample - Audit Process The following accounts must be involved in debtor's circularisation: 1) Large balances since they are large and the moreover you can sub

Cash and Window Dressing - Building Society Cash Possibility of misappropriation and error usually accompany the handling of cash. Building societies transactions towards

A. Board of Directors Best Buy's Board is elected by the shareholders to oversee the business and affairs of the company.  The board counsels, advises and oversees management wi

YvesLaurent has just been put in charge of the BeautyNatural Inc. audit.BeautyNatural is a small, but growing retail chain of natural cosmetics stores. BeautyNatural needs to borro

Case Study: You have commenced work as a graduate auditor with a well established audit firm. The firm has a wide client base, which includes some of the largest companies in t

Need of Assertions in Obtaining Audit Evidence Management is responsible for the fair presentation of financial statements which reflect the nature and operations of the entit