Periodical Audit is an audit for an intermediate period. This audit is started when the books of accounts closed at the end of the year. This audit is one that 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. This audit carried out at specified intervals within the year. In simple words, a periodical audit is an audit that is done after the financial period is over and the accounts are ready. It may also commence before the final accounts are prepared and continue until 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.
The auditor carries on his audit work continuously until it is completed. At this period, the auditor holds the books and checks the accounts. An auditor is in possession of the full facts relating to accounts for the year under review. It is the most satisfactory form of audit from the point of view of an auditor. 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. This type of audit is very much convenient and useful for business houses, which are small.
Following methods can be applied to conduct periodical audit:
- A periodical audit is conducted after the preparation of the final account. It is conducted when the accounting period ended. So, an auditor needs to check all those statements and accounts. In this audit, the auditor can do test checking.
- The auditor report is a prerequisite. The auditor should prove the final accounts correcting irregularities as far as possible.
- The auditor should use special signs after the completion of audit work. The audit is completed in a short period.