Audit Testing: Interim and Final Audit test


Final audit testing is part of the audit test on the financial statements which is normally performed at the year-end or at the time after the client produces its financial statements.

To let you get a better understanding of this, let me give you the big picture of the audit test. After this, you will be able to understand what is final audit testing and what is interim audit testing.

Well, in most cases, the scope of audit on the financial statements is twelve months. let’s say from 01 January 2016 to 31 December 2016. The auditor might choose, based on their audit strategy, to perform their audit in two sections.

One is interim and another final audit. And in the interim period, the financial statement to be reviewed could be six months or nine months. These audit strategies could help auditors works to be more efficient.

Now let’s discuss the detail of the final and interim audit testing

Interim Audit:

An interim audit is normally performed on the part of the client’s financial statements. For example, six months or nice months periods.

This work will help the auditor to reduce audit works at the year-end or at the final audit. Not all audit assignment requires an interim audit.

This is based on the audit strategy. however, most of the big clients required an interim audit. This will make the auditor get a better understanding.

Sometimes, clients request auditors to perform interim audits because they require the interim report or they try to reduce their involvement with the auditor at the year-end.

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And sometimes it is the requirement of local regulators that required the interim financial statements to be audited, especially the companies listed on the stock exchange.

Final Audit Test

Most of the audit works are performed at the final audit test. These might include a test of internal control and a substantive test. The final audit test is normally done at the agreed time frame between auditor and client.

But most of the cases have been done at the year-end because most of the audit reports are required to submit to related authorities in the early next months.

At this stage, the auditor will focus only on the last six months or three months period that remains from the interim audit. The audit procedures for both audits are not different.