Power Point Of Auditing

A PROJECT ON TYPES OF AUDIT Prepared byJaspreet Parminder Neeraja Rashmi

TYPES OF AUDIT ► ► ► ►

Based On Authority Based On Scope Based On Time Based On Object

TYPES OF AUDIT BASED ON TIME

CONTINUOUS

FINAL

INTERIM

AUDIT

AUDIT

AUDIT

CONTINUOUS AUDIT IT IS AN AUDIT WHEREBY THE AUDITOR IS CONSTANTLY ENGAGED IN CHECKING THE ACCOUNTS DURING THE ACCOUNTING PERIOD.

ADVANTAGES  QUICK DISCOVERY OF ERRORS  KNOWLEDGE OF TECHNICAL DETAILS  QUICK PREPARATION OF ACCOUNTS  AUDIT STAFF KEPT BUSY  PREPARATION OF INTERIM ACCOUNTS

DISADVANTAGES  DISLOCATION OF CLIENT’S WORK

 DEPENDENCE OF STAFF ON AUDITOR  TEDIOUS  COSTLY  CONFLICT BETWEEN AUDIT AND ACCOUNTS STAFF

FINAL AUDIT ITS AN AUDIT WHICH IS CONDUCTED AT THE END OF THE FINANCIAL YEAR.

ADVANTAGES  INEXPENSIVE  AUDIT AT A STRETCH  DOES NOT DISRUPT THE ROUTINE ACCOUNTING WORK  NO ALTERATION OF FIGURES

DISADVANTAGES  DEALY IN FINAL ACCOUNTS

 LATE DIVIDENDS TO THE SHARE HOLDERS  NO MORAL CHECK ON EMPLOYEES  SAMPLE CHECK OF THE TRANSACTIONS  NO FAMILIARITY WITH THE CLIENT’S BUSINESS

INTERIM AUDIT IT IS AN AUDIT WHICH IS CONDUCTED BETWEEN TWO ANNUAL AUDITS.

ADVANTAGES  QUARTERLY

RESULTS

 SPEEDY CONDUCT OF FINAL AUDIT AND PREPARATION OF FINAL ACCOUNTS  UP-TO-DATE BOOKS OF ACCOUNTS TO BANKS AND INVESTORS  UTILIZATION OF AUDIT STAFF  THOROUGH CHECKING

DISADVANTAGES  ALTERATION OF FIGURES  DISRUPTS ROUTINE ACCOUNTING WORK  ADDITIONAL WORK  PROPER PLANNING FOR THE FINAL AUDIT