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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- Debit memorandum
Some banks charge a monthly fee for their services. Often they charge this fee only when the average monthly balance in a checking account falls below a specified amount.
- Indirect materials
Indirect materials are those raw materials which cannot be easily associated with the finished product.
- 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.
Manufacturing consists of activities and process that convert raw materials into finished goods. Contrast this type of operation with merchandising...
Units-of-activity is a depreciation method in which useful life is expressed in terms of the total units of production or use expected from an asset, rather than as a time period.
- Privately held corporation
Privately held corporation is a corporation that has only a few stockholders and whose stock is not available for sale to the general public.
- Other receivables
Other receivables include various forms of nontrade receivables which do not generally result from the operations of the business.