This is an approach whereby the audit is carried out throughout the financial period. The audit work is carried out at predetermined intervals usually around three audit visits. This approach is ideal for large organisations with tight reporting deadlines e.g. multinational banks.

Assuming that the work is carried out in three-audit visits spread over duration of four months, the first audit visit will mainly entail carrying out detailed planning of the audit. Work carried out will include;

  1. Obtaining a good understanding of the clients business or updating the business understanding obtained in the previous audits.
  2. Identifying any developments in the clients business that could have a significant impact on the audit such as new legislation.
  3. Identifying any changes that have taken place at the client’s that could have an impact on the audit such as changes in management.
  4. Determining the number of staff members to be involved in the audit and the level of experience required and whether there will be need to involve experts.

The second audit visit will be carried out usually half way through the financial period work carried out will include;

  1. Ascertaining, recording and testing the clients internal control systems.
  2. Concluding on the level of reliance to be placed on the internal control system.
  3. Carrying out limited analytical review on the interim financial performance of the company. This will include carrying out ratio analysis.
  4. Deciding on the level of substantive testing and the nature of substantive procedures to be carried out.

The final audit visit will mainly entail review of the financial statements at the end of the financial year. Work carried out will include;

  1. Carrying out substantive procedures on the various account balances
  2. Concluding whether there are any significant misstatements in the financial statements.
  3. Final analytical review to verify whether the information obtained is consistent and whether the view presented by the financial statements is consistent with the auditors understanding of the business.
  4. Forming an opinion as to whether the financial statements show a true and fair view.