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Final Audit Principles and Advantages

Final, completed, periodic or annual audit refers to an audit that is conducted after the end of the accounting year, once all transactions for the full financial year have been recorded and final accounts have been prepared. It is considered a post-account audit. This type of audit is generally preferred by auditors as it is less expensive for smaller businesses and the chances of alteration of figures are lower after accounts are finalized. Some advantages of a final audit include that it is inexpensive for organizations as the auditor only spends normal time on the audit work and fees are also normal.

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7 views1 page

Final Audit Principles and Advantages

Final, completed, periodic or annual audit refers to an audit that is conducted after the end of the accounting year, once all transactions for the full financial year have been recorded and final accounts have been prepared. It is considered a post-account audit. This type of audit is generally preferred by auditors as it is less expensive for smaller businesses and the chances of alteration of figures are lower after accounts are finalized. Some advantages of a final audit include that it is inexpensive for organizations as the auditor only spends normal time on the audit work and fees are also normal.

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Pranal
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PRINCIPLES AND PRACTICE OF AUDITING 2.

17

9) Rectification entry: Any alteration should be done by means


of a rectilication entuy in the journal.
10) Secret tick: The auditor should put a secret tick against
any bgure alreacdy altered.
32 Final or completed audit / periodic audit/ Annual audit :

Meaning: Final, completed, periodic or annual audit means an


audit taken up after the end of the accounting year. The audit
work begins only after the accounting year is over.

Generally majority audits are in the nature of final,


periodic, completed or annual audits. Under this type of audit
the auditor takes up his work of checking the books of accounts
and other related documents only at the end of the accounting
period when the transactions for the whole financial year are
completely recorded, balanced, the trial balance is then drawn
and the final have been
out accounts prepared. Theauditor will
normally start routine checking of books and other audit
procedures only after the close of the financial year. Final audit
is carried out continuously until it is completed. It is a post
account audit.

This type of audit is appropriate for smaller business


concern because it is less expensive. It is also suitable where
the chances of frauds are less. This type of audit is generally
preferred by the auditors because the chances of alteration of
figures are less. Besides the final and continous audit, there
may be two more types of audit viz. Interim audit and balance

sheet audit. )
3.2.1 Advantages of final audit
Final audit has the following advantages :

) Inexpensive : Under this type of audit, the auditor spends


normal time on the audit work, the audit fees are also normal.
Final audit is thus inexpensive. Even a small organisation (a
sole trader or a firm) can opt for a final audit to obtain the

aavantages of an independent financial audit.

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