Interim Versus Final Audit?

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Jaap de Jonge
Editor, Netherlands

The Difference Between Final Audit and an Interim Audit

FINAL AUDIT
A final audit is also known as "annual audit" or "full audit". This type of audit is usually done at the end of the financial year when all the accounts have been balanced and P & L Account and the Balance Sheet have been prepared. In the case of such an audit the auditor visits his client to check the accounts until the audit work for whole of the year is completed. A final audit should be performed without overly friendly ties between the auditor's staff and the clients staff.

INTERIM AUDIT
In between two annual audits there can also one or more interim audits. Their object can be to enable the company to declare an interim dividend. An interim audit involves a complete audit of accounts for a part of the year i.e. from the date of the last Balance Sheet to the date of the interim accounting period. With interim audit already present, it becomes more easy to complete the annual audit.