(2) could get more opportunities to defraud accounts

(2) The detailed checking involved in continuous audit can discover errors and fraud easily and quickly. If the accounts were checked after the year by the auditor, it was easy to locate an error and more so, the clerks could get more opportunities to defraud accounts in that case.

(3) Since the accounts are checked throughout the year, it becomes easily possible to present the final audited accounts to the shareholders soon after the close of the financial year. Thus, the work of the auditor becomes more efficient. (4) The regular visits performed by the auditor make the clerks alert to maintain the accounts up-to-date.

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The accounts thus maintained are also accurately prepared by them. (5) As the auditor pays surprise visits to the business in continuous audit, it has a considerable moral check on them as these clerks are not aware when the auditor will come. (6) The auditor comes more and more in touch with the business affairs and its technical details. Hence, he can advance valuable suggestions to his clients for improving the working of the business and the system of maintaining accounts. (7) In big business houses, where monthly statements are prepared and the management is not smooth, continuous audit has proved to be very useful. (8) In continuous audit, an auditor can perform his duties with ease. He can plan his work well and proceed with confidence.

Thus, he can be in a position to relieve him of a great undue burden which would otherwise have fallen upon him at the close of the financial year.


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