Meaning Of Partial Audit
An audit which is conducted considering the particular area of accounting is known as partial audit. Under partial audit, audit of whole account is not conducted. Audit of particular area where the owner thinks essential to conduct audit will be conducted. Generally, transaction of business is related to cash, debtor, creditor, stock etc. A business may conduct an audit of any of these transactions.
An auditor should conduct audit of that transaction as per the scope determined by the agreement. Method of conducting such audit is similar to other audit but an auditor should sign the report clearing stating the 'partial audit'. If it is not done so, an auditor will be liable for the loss which is caused due to using the report as complete audit.
Objectives Of Partial Audit
Partial audit has following objectives:
1. To know whether the capital is fully mobilized or not.
2. To clarify the doubts where the owner has suspected.
3. To conduct final audit in less time and in less expenses because particular area of account is checked in detail .
Advantages Of Partial Audit
Partial audit has following advantages:
1. Partial audit conducts the audit of suspected area; so, work of audit remains less expensive.
2. Partial audit helps to detect and improve the frauds and errors quickly because audit of suspected area is conducted.
3. Partial audit provides suggestions after checking books of accounts of particular area which helps to increase the efficiency of staffs.
Disadvantages Of Partial Audit
Partial audit has following disadvantages:
1. An organization and auditor cannot present as proof to the report of partial audit because it is not legal audit.
2. Partial audit is made only for control purpose but it does not prove true and fair of financial position.
3. Partial audit is not statutory audit. So, final audit is compulsory which is misuse of time, labor and cost.
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