What is a final audit?

What is the final audit?

The final audit means when the audit is done after the close of the financial year or when the final accounts are prepared. The audit is completed in one continuous session.

Advantages of Final Audit

• Less danger of manipulation of figures after they have been checked.
• The auditor need not maintain a big establishment for this purpose.
• The preparation of the time table for audit for the audit staff is made easy.
• Wastage of time is avoided in case of the final audit.
• Tension among the accounting staff is eased out because in the absence of so many visits by the auditor creates the tension in the mind of accounting staff.
• The money spent by the business firm in the final audit is smaller than other types of audits.
• The final audit is more beneficial for small business firms.

Disadvantages of Final Audit

• The easy and quick discovery of errors is not possible in the final audit.
• The accounts are also not presented very quickly.
• The accounts staff of the client is not kept regular during the year because they know the auditors will visit after the closure of the financial year.
• There is not a moral check on the staff of the client.
• More time and attention is to be paid on the work.
• If a company has to declare the interim dividend, in that case, final audit is not useful.
• In the case of a final audit, the audit staff remains idle during the whole year because they have to work only after the closure of the financial year that too for a very little period.
• Because of limited time, the auditor has difficulty finishing the work of all clients in proper time.