Auditing

Question. : Define and differentiate between Continuous, Final and Interim Audit. Answer: Continuous Audit: It is desired that the auditor should examine the accounts more frequently, the shareholders may appoint the auditor to conduct continuous audit, and where the auditor examines the accounting records at frequent intervals throughout the accounting year, such audit is called as continuous audit. According to Sir …

Definition of auditing: According to Montgomery, a prominent American accountant: “Auditing is a systematic examination of books and records of a businesses and other organization, in order to ascertain or verify, and to report upon the facts regarding its financial operation and the result thereof.“                 Scope of audit We can see scope of auditing by following headings: Legal Requirements: The …