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.
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- Outstanding liabilities
Outstanding Liabilities are those liabilities which have not been paid at the date of the balance-sheet.
- Purchase returns & Allowances
Purchase return means a return of goods from the buyer to the seller for a cash refund if the purchase was for cash or, credit if the sale was made on credit.
- Categories of securities
For purposes of valuation and reporting at a financial statement date, companies classify debt and stock investments into three categories:
- Physical units
Physical units are the actual units to be accounted for during a period, irrespective of any work performed. To keep track of these units, add the units started...
- Voucher system & Voucher
A voucher system is a network of approvals by authorized individuals, acting independently, to ensure that all disbursements by check are proper. A voucher is an authorization form...
- Raw materials
Raw materials are the basic goods that will be used in production but have not yet been placed into production.
Drawings refer to the withdrawal of cash or other assets from an unincorporated business for the personal use of the owner. Drawings decrease the owner’s equity.