Partial Audit: Objectives, Advantages and Disadvantages

PARTIAL AUDIT

Introduction

A partial audit is an audit that is conducted considering the particular area of accounting. Under partial audit, audit of the whole account is not conducted. Only the audit of the particular area where the owner thinks it is essential to conduct an audit will be conducted. Normally, business transaction is concerned with cash, debtor, creditor etc.

A business may conduct an audit of any of these transactions. Method of conducting such audit is identical to other audit but an auditor needs to sign the report clearing stating the 'partial audit'. If not done as stated, the auditor will be liable for any loss caused as a result of using the report as complete audit by the users.

Objectives Of Partial Audit

1. To confirm whether the capital is fully mobilized or not.

2. For clarification of doubts on where the owner has suspected.

3. To conduct final audit in less time and expenses because particular area of account is checked in details .

Advantages Of Partial Audit

Partial audit has many advantages, some of which are:

1. The audit of suspected area is conducted by partial audit. As a result, audit work is less expensive.

2. It helps in detecting the frauds and errors of the suspected areas quickly.

3. Suggestions are provided by partial audit after checking the books of accounts of particular area which helps in increasing the efficiency of staff members.

Disadvantages Of Partial Audit

Partial audit has several disadvantages, some of which are:

1. It cannot be presented by an organization and an auditor as a proof of audit because it lacks legal backing.

2. Partial audit is only made for the purpose of control as it does not show or present the true and fair financial position of an organization.

3. Partial audit is not a statutory audit. Therefore, final audit is still compulsory. This means that the partial audit already conducted would be a misuse of time, cost and labor.