Commercial Law and Preliminaries of Auditing · Class 11 Commerce
Ch 5Different Types of Audits – I — Class 11 Commercial Law and Preliminaries of Auditing, concept-first.
Audits can be classified along several axes — this unit covers the classification made on the basis of time, i.e. WHEN, and how often, the auditor's work is carried out during the year. The first, and most detailed, type on this axis is the Continuous Audit.
Key concepts
Hover a concept to preview it and jump to its most relevant Q&A.
Continuous Audit
A Continuous Audit is one where the auditor's staff visits the client's premises and checks the accounts at regular or irregular intervals throughout the financial year, rather than only after the year-end.
Most relevant Q&A
- A Continuous Audit is best described as an audit where the auditor or their staff: (a) Visits the client's premises only once, after the boo…Free
- Which of the following is a genuine ADVANTAGE of a Continuous Audit over a Periodical Audit? (a) It completely eliminates any possibility of…Free
- Which of the following is a recognised LIMITATION of a Continuous Audit? (a) Figures already checked by the auditor may be altered later by…Free
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Continuous Audit — Meaning, Advantages and Limitations
Audits can be classified along several axes — this unit covers the classification made on the basis of time, i.e. WHEN, and how often, the auditor's work is carried out during the year.
Periodical Audit (Final Audit) — Meaning, Advantages and Limitations
The second type on the basis-of-time classification is the Periodical Audit, also called a Final Audit or Completed Audit — by far the most common form of audit for small and medium-sized organisation…
Interim Audit — Meaning, Advantages and Limitations
The third type on the basis-of-time classification is the Interim Audit — an audit conducted for a specific purpose, covering only part of a financial year, at some point BETWEEN two annual (Periodica…
Distinction Between Continuous Audit and Periodical Audit
Having studied all three time-based audit types individually, the syllabus specifically calls for a clear distinction between Continuous Audit and Periodical Audit — the two 'full-coverage' options an…
More questions
+−Show 8 questionsHide questions8 questions
- Q1A Continuous Audit is best described as an audit where the auditor or their staff: (a) Visits the client's premises only once, after the boo…Free
- Q2Which of the following is a genuine ADVANTAGE of a Continuous Audit over a Periodical Audit? (a) It completely eliminates any possibility of…Free
- Q3Which of the following is a recognised LIMITATION of a Continuous Audit? (a) Figures already checked by the auditor may be altered later by…Free
- Q4A 'Periodical Audit' (also called a Final or Completed Audit) refers to an audit that is conducted: (a) Continuously throughout the year, at…Preview
- Q5Compared to a Continuous Audit, one genuine ADVANTAGE of a Periodical Audit is that: (a) It detects errors and frauds earlier during the yea…Preview
- Q6An audit conducted between two Annual (Periodical) Audits, typically to enable a company to declare an interim dividend or to ascertain the…Preview
- Q7Which of the following correctly distinguishes a Continuous Audit from a Periodical Audit? (a) A Continuous Audit is conducted only once a y…Preview
- Q8Which of the following is a genuine LIMITATION of an Interim Audit? (a) It can never be used to support the declaration of an interim divide…Preview