Partial Audit is a kind of audit, where the work of the auditor is curtailed. For example, an auditor may be asked to check only the cash book” to detect misappropriation of cash. It may be noted that partial audit is not permitted in case of companies. Partial Audits are very useful for updating your In Stock Amount before large events, or for getting more frequent counts on your high-value items (e.g. counting proteins every week and counting your other items once a month).
An auditor signs the report clearing stating that the engagement is ‘partial audit’. If it is not done so, an auditor will be liable for the loss which is caused due to using the report as a complete audit.
Objectives of Partial Audit
A partial audit has the following objectives:
- Under partial audit, audit of the whole account is not conducted. Generally, the transaction of business is related to cash, debtor, creditor, stock, etc. A business may conduct an audit of any of these transactions.
- To know whether the capital is fully mobilized or not.
- To clarify the doubts where the owner has suspected.
- To conduct a final audit in less time and in fewer expenses because a particular area of account is checked in detail.