Partial Audit | Advantages Of Partial Audit | Disadvantages of Partial Audit

Normally, a business deal is related to the creditor, debtor, money, and so forth. A business can perform an audit of all these transactions in a year. Methods of performing such audit too are the same as other audit but when an auditor has to sign the final report stating that he/she has completed the partial audit, then this makes it clear that he/she did the audit as per rules. In some countries, such a process of auditing also is done by the government itself.

Companies are having a concern for money matters and that's why partial audit has become important in the corporate world. It is very important to protect the money of the company. Therefore, the demand for full or partial audits has increased enormously. This kind of service has been accepted as a best practice today.

Partial audits are divided into two classes, first is the public limited audit where only one portion of the total is audited by a controller or senior manager and the second is the internal audit, which involves more employees and the scope of auditing also includes an internal accountant, internal auditors, etc. These two types of audits are very widely used to protect the interests of the company as a whole and each section is also independently audited for its effectiveness.
Partial Audit | Advantages Of Partial Audit | Disadvantages of PartialAudit



During the time of performing a partial audit of your company, you will find out if there have been any errors made in the calculations and if it has been properly documented. You should also check the total expenses and flow of finance so that you can analyze them. You should also check the accounts receivable and accounts payable for the period just past. You should get an idea of the inventory levels and the raw material costs.

An Entire audit will include each of the financial reports of the company such as gain and loss account, income statement, balance sheet, statement of earnings, etc.
It's also wise to examine the cash flow analysis, stock cost data, working capital data, etc. A number of the essential places to be reviewed include control mechanisms, control procedures, assurance mechanisms, payables, and receivables, etc. If you discover any mistake, you need to report this to the concerned authority. If it is detected in a particular area, then the audit report should include corrective action is taken and reasons for such an error.

You should also keep a record of the reviews, observations, findings, and suggestions made on the audit. The audit records should be kept for reference.

Advantages Of  Partial Audit

  1. The advantages of the partial audit are more visible when the company is small and there is a possibility of an increment in its assets over a given time period. This is also visible when the company is expanding its business area and there is the possibility of increment of assets in that area. As a small company, it is quite possible to check all the accounts' balance without involving any extra financial resources for that purpose.

  2. Other advantages of Partial Audit include a reduction in cost, better control over inventory levels, elimination of unnecessary paperwork, improved cash flow management, and increase in employee productivity.

  3. Advantages of Partial Audit, In a nutshell, the advantages of the partial audit are more visible in small scale companies when compared with large companies. To verify whether the company is fully activated or not. Here are some of the benefits of performing the activity of partial audit: To ensure that company's books are accurate as per the books.


For clarification of various doubts regarding a particular area of accounting. For example, if there is an increase in the stock but no increase in the salary of an employee then there might be chances of fraud and deception. To identify the exact position of the accountant. This activity of partial audit checks if the accountant is working in proper and full order.

Disadvantages of Partial Audit

Disadvantages of Partial Audit Apart from the above advantages and disadvantages of this activity of auditing, there are certain disadvantages of performing this activity of partial audit.

  1. For instance, in this activity of auditing, the person who does the activity of auditing is not considered as an accountant by the client and thus he or she is not liable for any statutory audit or under SPA. This means that client can never make a claim for the statutory audit and for under SPA, his/her negligence can never be charged.


In case, if the client finds some sort of frauds or deception on the part of the accountant then he or she has to bear the entire cost of an investigation. Though the advantages of such activity are very much large, it has its own disadvantages.

2. When this activity is being performed as compared to the whole account audit, the performance of the whole account audit is more reliable as compared to the partial audit. As the whole account is being audited only a few important issues are focused upon and then the report is prepared for submission to the CPA. Hence, the frauds which are detected during the whole account audit can easily be concealed by the client.

3.The disadvantages of this activity are also very obvious. The most important disadvantage is that the person doing the activity of partial audit cannot check the correctness of the information provided by the client. He/she cannot verify the data provided by the client. In case, if the client provides wrong data, then the results of the partial audit report cannot be trusted as well.

Even if the accountant tries to correct the data in preparation for the submission of the audit report, then the client may not be satisfied with the changed statement and hence, he or she may file a complaint against the company or the officer.

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1 Comments

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