Interim Audit refers to the examination of books of accounts with the objective of checking the recording of transaction correctly and working of the company in the manner legally acceptable before the conduct of any statutory audit or annual audits.
An interim audit involves preliminary Audit work that is conducted prior to the Annual audit of a client. The interim audit tasks are conducted in order to compress the period needed to complete the final audit. It involves complete and detailed examination of transactions and accounts up to the date of interim audit.
The objective of conducting interim audit is to know the reliability and accuracy of financial statements of a business for a part of the year.
Some advantages of conducting Interim Audits:
- Early Detection of Errors and Frauds
- Helps in Publication of Interim Results
- Early Completion of Annual Audit
- Review Internal Control System