Periodical Audit is started when the books of accounts closed at the end of the year. After the completion of the financial year, audit work is undertaken which goes on continuously till its completion. The only thing is that the audit is completed in one continuous session. This system is the most satisfying from the auditors’ point of view. The auditor carries on his audit work continuously until it is completed. This type of audit is very much convenient and useful for business houses, which are small.
Objectives of Periodical Audit –
- A periodical audit is conducted after the preparation of the final account. So, an auditor needs to check all those statements and accounts.
- To know whether the organization has maintained regularity at the time of maintaining books of accounts. The auditor should prove the final accounts correcting irregularities as far as possible.
- To know that the profit or loss presented by the business is true and fair. To know the profit or loss of the end period and distribute interim dividends.
- To know that the financial position presented by the balance sheet is true and fair. The auditor should use special signs after the completion of audit work.
- To get a loan on the basis of final accounts and to get information about the financial position of the interim period.