Advantages of Final Audit

Advantages of Final Audit

1. Alteration Chances Limited
In the other types of audit the alteration is possible in the audit. But in the final audit the alteration of any type is not possible after the audit.
2. Checking of Complete Record
In the final audit there is complete checking of the books of accounting. He can decide either to check cent percent or by sampling.
3. Advantage for the Shareholders
Final audit serves the shareholders by giving them the most reliable financial information for the investment purpose.
4. Advantage for the Owner
Sometimes the business is so large that even one owner doesn’t know the real position about the business. So final audit throws light on the business position and provides him satisfaction.
5. Convenient or Suitable
Final audit is very suitable for the auditor and client staff. It saves both the parties from continuous disturbance.
6. Saving of Time
In the continuous audit the work of audit is continuous through out the year. It takes a lot of time. But as compare to it final audit takes a very short time. So, in the final audit the time is saved.
7. Legal Demand
Final audit is also helpful in checking either the management has fulfilled the legal requirements or not. The management is bound to fulfill the legal requirement.
8. Economical
Final audit is beneficial for the client. It is not a regular burden on him, because it is conducted only once in a year at the end of the accounting period. So, it gives the maximum benefit with minimum cost.
9. Improves the Efficiency
In this audit the performance of the staff improves due to finding out the weak points of the employees by the auditor by overcome these weakness the staff can improve his efficiency.
10. Submission of Report
About the fairness and correctness of accounts final report is very important for the good will of the company.
11. Staff Duties
In final audit there is no clash of duties between the audit and accounting staff. They performed their work accordingly. The accounting staff remains busy throughout the year in his work and the audit staff his work when the accounting staff ends his work.
12. Convenient for Management
The benefit of final audit is that it is convenient for management as well as for audit staff. The auditor can start and complete the audit at one session. The queries can be cleared on the same day.
13. Minimum Time Period
The time required for final audit is less as compared to continuous audit. The auditors can start and complete many audits. They can raise their income by means of new audit work.
14. Planned Work
The final audit has minimum time. So, the work of audit is completed under planning. An audit programme is maintained which provides the schedule of the working of the audit staff and the principal auditor can control the audit work.
15. Work Continuity
In the final audit the work of audit go through without any break and same way the auditor can be satisfied for the doubt, which raise from his work on the same time.
16. Small Business
The final audit is useful for small-scale business units. The fee charged by auditor is less as compared to continuous work. The small income of business can afford small audit fee.
17. No Relations
The merit of final audit is that it provides no chance to audit staff to develop friendly relation with accounting staff. The accounting staff is not in a position to get undue benefit from audit staff.
18. Full Information
The final audit is useful as it provides full information about business matters. The auditor can take decision on the spot for completion of audit work and submission of audit report.
19. Income of Auditor
This type of audit is also helpful for the auditor. Because this audit saves the time of the auditor and he can conduct many other audit of other business.
20. Information of Client
Final audit serves the shareholder by giving them the most reliable financial information for the investment purpose.
21. Technical Knowledge
According to the law all the companies are bound that a qualified and experienced person who must be a chartered accountant can conduct the audit. He is a qualified person and there are no chances of fraud or errors.
22. Element of Friendship
In final audit there is a short time for the auditor staff. So, in the auditor staff or accountant staff no friendship or soft corners created because their understanding is up to some limits. So there are no chances of fraud created by the both staffs.
23. Beneficial for Client’s Staff
As final audit is conducted at the close of the books of Accounts. The client’s staff is not distributed as in continuous audit. They can easily complete their work and the records are provided at the proper place.
24. Protection
In any business the directors can change the figures according to their interest but the final audit protect the rights of the shareholders by providing them correct information.
25. Guidance
The auditor not only provides the true and fair information but also guide the management how can they improve their accounting systems.
26. Thread of Work
In the final audit there is no interval in the work of auditor and it is carried on till its completion. So the audit staff cannot loose the thread of the work, which is performed by them.
27. Moral Check
In the final audit there is moral check of the person who performed the work. The signatures are specified on that work.