What Is Periodical Audit ?
Following methods can be applied to conduct periodical audit:
The main objectives of periodical, final, or complete audit are as follows:
Periodical audit is one which is taken up at the close of the financial or trading period when all the accounts have been balanced and Trading and Profit and Loss Accounts and the Balance Sheet have been prepared. It may also commence before the final accounts are prepared and continue till the audit is completed even after the close of the financial or trading period. The only thing is that the audit is completed in one continuous session. At this period, the auditor holds the books and checks the accounts. Auditor is in possession of the full facts relating to accounts for the year under review. In the case of such an audit, the auditor visits the client only once a year and goes to the accounts units audit work for that whole of the period is completed.
Following methods can be applied to conduct periodical audit:
* Periodical audit is conducted after the preparation of final account. So, an auditor needs to check all those statements and accounts.
* Auditor should prove the final accounts correcting irregularities as far as possible.
* Auditor should use special sign after the completion of audit work.
Objectives Of Periodical Audit
1. To know whether the organization has maintained regularity at the time of maintaining books of accounts.
2. To know that the profit or loss presented by the business is true and fair.
3. To know that the financial position presented by the balance sheet is true and fair.