Concurrent Audit

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Rakesh (Querist)
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28 February 2008 What is the procedure for taken concuurent audit. And if we will doing partnership what date will be effective.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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29 February 2008
Concurrent audit is a systematic and timely examination of financial transaction on a regular basis to ensure accuracy, authenticity, compliance with procedures and guidelines. The emphasis under concurrent audit is not on test checking but on substantial checking of transactions.

The concept of concurrent audit has been introduced to reduce the time gap between occurrence of transaction and is overview or checking. The concurrent audit serves the purpose of effective control.

concurrent audit is an examination, which is contemporaneous with the occurrence of transactions or is carried out as near thereto as possible. It attempts to shorten the interval between a transaction and its examiantion by an independent person not in its documentation.

This concurrent audit is essentially a managment process integral to the establishment of internal accounting functions and effective controls and setting the tone for a vigilance internal audit to preclude the incidence of serious errors and fraudulent manipulations.