Discover the advantages of continuous audit for auditors. Explore how real-time risk identification, increased efficiency. A continuous audit is that which is performed in a regular manner during the whole year or at different intervals in a year A continuous audit is also known as running audit or a detailed audit.
Advantages Of Continuous Audit For Auditors.
Under this audit, the auditor visits at regular or irregular intervals during the financial year and checks each and every transactions. At the end of the year he checks the profit and loss accounts and the balance sheet. This audit is costly but its cost is less than amount of errors and frauds.
Advantages of Continuous Audit
- DISCOVERY OF ERRORS
Its main advantages is that the errors are easily discovered and rectified because the auditor checks the accounts at regular intervals.
- DISCOVERY OF FRAUD
If there is any fraud in accounts, it can be discovered through this audit because the auditor checks the accounts at regular intervals.
- SURPRISE VISITS
Due to continuous audit surprise visits of auditor are possible and due to this accounting staff becomes alert and there are no chances of fraud.
- INTERIM DIVIDEND
If the directors of company decide to pay the interim dividend, the continuous audit is very helpful The accounts are prepared for six months.
- DIVIDEND PAYMENT
With the help of continuous audit, the accounts are easily completed at the end of the year, so it becomes possible to pay the dividend.
- DETAILED CHECKING
Detailed checking becomes possible with the help of continuous audit because the audit staff remains busy throughout the year.
- ENCOURAGING INVESTMENT
Investment is encouraged with the help of continuous audit because this audit is very helpful in controlling the irregularities.
- ACCOUNTS COMPLETION
With the help of continuous audit the accounts are easily completed in times.
- RULES AND REGULATIONS
The continuous audit also provide an opportunity to the auditor to study the rules and regulations framed by the company from time to time critically.
- ACCOUNTS UPTO DATE
In the continuous audit, the auditor visits are surprise at the client’s office, so clerks always keep the accounts up to date.
11.EARLY MEETING
The continuous audit is very helpful for early meeting of shareholders.
12. PROMPT FILING OF RETURN
The continuous audit is very beneficial for promt filing of return.
- REGULAR STAFF
Staff becomes regular due to continuous audit because they have to prepare the regular accounts for showing it to the audit staff
- SUFFICIENT TIME
Continuous audit provides the sufficient time to the audit staff. The important and ambigous matters may require more time to draw conclusion. There is a sufficient time for such matters.
- DISTRIBUTION OF LOAD WORK
Continuous audit is helpful for the distribution of load work. The audit staff can prepare their audit program.
- EARLY LOCATION OF ERRORS
With the help of continuous audit the errors are early located because recording and checking of entries is done at the same time.
- AUDITOR’S ADVICE
The continuous audit is beneficial to seek auditor’s advice because the auditors are professional, so they can give the better advice.
- MORAL CHECK
The continuous audit is useful to develop moral check on employees. The time between recording and checking.
In conclusion, continuous audit offers several benefits for auditors, including real-time risk identification, increased efficiency, enhanced data accuracy, timely fraud detection, and seamless compliance.
