What is a temporary audit?
Provisional audit is a type of audit strategy that is usually used at a certain moment during the current fiscal year. This type of audit allows you to complete at least some of the tasks involved in the preparation of the final audit as soon as the fiscal year closes. The advantage of this approach is that it is possible to provide shareholders and other participants in the final data of the audit before the final audit started after the completion of the fiscal year.
As well as any type of audit task, a temporary audit will include a detailed investigation of financial records. Temporary audit standards are the same as standards used to perform any type of accounting or inventory control and must adhere to all principles and procedures that are part of the final audit process. This is necessary because the data collected and analyzed during the Provisional Audit have a direct effect on the outcome of this audit at the end of the year.
While the continuous audit and interim -bred is someDy confused, both approaches are in fact very different. The continuous audit usually provides information about audit that is accurate until the date in the fiscal year. For example, a continuous audit may be performed per month, and each new audit shows the changes that have occurred since the last audit.
On the other hand, a temporary audit usually covers a longer period of time and is intended to speed up the completion of the final audit. For this type of audit, it is not uncommon to cover the first three quarters of the fiscal year, allowing a number of audit tasks to be completed that will not require repetition in the fourth quarter analysis. The final result is that most of the work for the final audit is completed before the end of the fiscal year and the task of completing this audit in the New Year will get a podcesta is much less daunting.
Provisional audit usually does not lead to formal messages,that are widely shared with investors or the general public. Company officers and management are usually informed about the results of the audit, as the data may indicate the need to solve a specific problem regarding shares, reporting procedures or some other aspects that affect stocks. Formal reports are not published until the final audit has been completed and the auditors are ready to release their final views on the status of the company's accounting processes and monitoring mechanisms that allow you to document each financial transaction.