A continuous audit or a detailed audit, as it is sometimes called, is an audit which involves a detailed examination of the books of account at regular intervals of say one month or three months.
The auditor visits his clients at regular or irregular intervals during the financial year and checks each and every transaction. At the end of the year he checks the remaining transactions which have not been checked, the profit and loss account and the balance-sheet.
More from this Section
- Comprehensive income
Comprehensive income includes all changes in stockholders equity during a period except those resulting from investments by stockholders equity during a period...
- Retained earnings restrictions
Retained earnings restrictions are circumstances that make a portion of retained earnings currently unavailable for dividends.
- Labor price variance
Labor price variance is the difference between the actual hours times the actual rate and the actual hours times the standard rate for labor.
- Salvage value
Salvage value is an estimate of the asset’s value ate the end of its useful life. This value may be based on the asset’s worth as scrap or on its expected trade-in-value.
- Total cost of work in process
Total cost of work in process is the cost of the beginning work in process plus total manufacturing costs for the current period.
- Stock dividend
A stock dividend is a pro rate distribution to stockholders of the corporation’s own stock. Whereas a company pays cash in a cash dividend, a company...
- Unit production costs
Unit production costs are costs expressed in terms of equivalent units of production. When equivalent units of production are different for materials and conversion costs...