Main advantages or merits of continuous audit can be pointed out as follows:
1. Quick Detection Of Errors
In continuous audit, books of accounts are checked and verified at regular interval throughout the financial year. It helps to locate accounting errors and frauds very quickly. Early detection of errors helps to rectify them sooner.
2. Useful For Large Organization
Continuous audit is very useful for large business organizations having the large number of financial transactions.
3. Quick Presentation Of Accounts
With the help of continuous audit, books of accounts can be examined and verified quickly. So, final audit report can be presented sooner.
4. Avoids Missing Entries
Continuous audit helps to maintain proper and up-to-date records of every financial transaction. So, there will be no missing entries.
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5. Regularity Of Staffs
Continuous audit gives moral pressure to the accounting staffs. They become regular because of regular visit of the auditor. It also motivates them to maintain proper accounts.
6. Elimination of Waste
Wastage and inefficiencies can be eliminated with the help of continuous audit. This helps to increase production and profit of the firm.
