Final audit means when the audit is done after the close of financial year or when the final accounts are prepared. The audit is completed in one continuous session.

Advantages of Final Audit

  • Less danger of manipulation of figures after they have been checked.
  • Auditor need not maintain a big establishment for this purpose.
  • Preparation of time table for audit for the audit staff is made easy.
  • Wastage of time is avoided in case of final audit.
  • Tension among the accounting staff is eased out because in absence of so many visits by the auditor create the tension in mind of accounting staff.
  • The money spent by the business firm in final audit is smaller than other types of audits.
  • Final audit is more beneficial for small business firms.

Disadvantages of Final Audit

  • The easy and quick discovery of errors is not possible in final audit.
  • The accounts are also not presented very quickly.
  • The accounts staff of the client is not kept regular during the year because they know the auditors will visit after closure of financial year.
  • There is not moral check on the staff of the client.
  • More time and attention is to be paid on the work.
  • If a company has to declare the interim dividend, in that case final audit is not useful.
  • In case of final audit, the audit staff remains idle during whole year because they have to work only after the closure of financial year that too for very little period.
  • Because of limited time, auditor has difficulty to finish the work of all clients in proper time.


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