Advantages of Continuous Audit

Advantages of Continuous Audit

1. Early Location of Errors and Frauds
In the Continuous Audit, the audit visit the clients after a short period. So, he is in a position to check the information completely in detail. It is helpful in checking the errors and frauds easily. If the audit is conducted after the year ended. It is not possible to find the errors or frauds easily.
2. Check on Frauds
In the Continuous Audit the errors are located earlier. So it is also helpful in the early correction of errors and frauds because it is located at the time when it can be corrected earlier.
3. Quick Rectification
Due to Continuous Audit errors are located easily and rectified at an early stage.
4. Special Attention
Before the finalization of accounts an auditor has a sufficient time to pay proper attention to the checking of account and detection of frauds and errors.
5. Guidance to Client
The auditor remains in touch with the business details, so he also indicates about the mistakes and gives valuable suggestions to the client to keep the accounts in proper manner.
6. Useful for Declaration of Dividend
The continuous audit is also helpful for the declaration of the dividend. As the accounts are checked throughout the year, so the audit accounts are ready for the declaration of dividend.
7. Upto Date Accounts
Accounts of the business are kept up to date by the staff because they know that auditor may visit and check the accounts at any time.
8. Chance of Over Looking Reduces
Auditor has a close contact with the details of the accounts and he has also sufficient time to check the records. So the chances of over looking are reduced in this type of audit.
9. Quick Presentation of Accounts
Continuous audit is very useful because accounts are maintained regularly. So as the financial years end final audited accounts are presented before the shareholders.
10. Accounts Completion
Another audit benefit is the early completion of the accounts checking. The results of audit can be found out just at the end of the accounting period.
11. Moral Check
In the continuous audit the auditor make the surprise visit in the business. The clerks are not aware about the visit. So they are alert and efficient in their work. There is less chances of frauds in this type of business.
12. Convenient for Auditors
In this audit, the several visits paid by the auditor to the client’s office in enable his work to proceed easily and smoothly. It also increases his confidence in his capacity to do his work efficiently and effectively.
13. Regular Staff
The regular visits performed by the auditor, make the clerks alert to maintain the accounts up to date and accurate for fear that the auditor may land up in the office any time.
14. Sufficient Time
Continuous audit provides sufficient time to the audit staff. The important and ambiguous matters may require more time to draw conclusion. There is ample time for such matters.
15. No Missing Entries
Continuous audit is also helpful in keeping the full record. In the record there is no missing entries.
16. Early Correction of Errors
The continuous audit is helpful for early correction of errors. The auditor can point out
17. Prompt Filing of Returns
The continuous audit is also helpful for the prompt filing of returns. The management can submit audited account to the registrar as soon as the end of the year.
18. Early Meetings
This audit is helpful for the early meeting of the shareholders. The accounts are presented for the distribution of profit.
19. Surprise Visits
The continuous audit provided chances of surprise visit to audit staff. The accounting staff becomes alert due to surprise visit. It is essential for eliminating the chances of error and frauds.
20. Upto Date Record
The continuous audit is useful for keeping the up to date record. Such record is needed by management for borrowing funds, settlement of tax and dealing with labour union.
21. Even Work Load
Due to even workload, the audit staff feels the satisfaction. The books of accounts are maintained as the routine matters. And there is less chances of errors and frauds.
22. Auditor Advice
In the continuous audit the auditor can find the weakness of the business during the year and he can make the suggestion for the improvement of the business.
23. Close and Extensive Check
As the auditor visits the client’s office after a month or so, but at regular intervals, a detailed close and exhaustive cheek can be possible. If the audit is to be under taken after the end of the year, such detailed checking will be difficult.
24. Technical Detail
In a continuous audit, the auditor is more in touch with the technical details and business affairs. So, the auditor can help his clients by giving him the valuable suggestions to improve business.
25. Distribution of Work
Continuous audit is also helpful in distribution of load of work on the staff. The work of audit continues the whole year. The audit staff can easily make the audit programme according the time required.