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
- Specific identification method
Specific identification method refers to an actual physical flow costing method in which items still in inventory are specifically coasted to arrive at the total cost of the ending inventory.
- Treasury stock
Treasury stock is a corporation’s own stock that has been issued and subsequently reacquired from shareholders by the corporation but not retired.
- Cost-volume Profit (CVP) graph
Cost-volume Profit (CVP) graph refers to a graph that shows the relationship between costs, volume, and profits.
- Price-earnings (P-E) ratio
The price-earnings (P-E) ratio is an oft-quoted measure of the ratio of the market price of each share of common stock to the earnings per share; computed...
- Retailers & Wholesalers
Merchandising companies that purchase and sell directly to consumers are called retailers.Merchandising companies that sell to retailers are known as wholesalers.
- Unearned income
Income received though a part of it is not applicable to the current year but will be earned during the following year is called
- Direct materials
Raw materials that can be physically and directly associated with the finished product during the manufacturing process are called direct materials.