The correct answer is: B. Intermittent examination of accounts.
An interim audit is an examination of a company’s financial statements that is conducted at a point in time other than the end of the company’s fiscal year. Interim audits are typically conducted to provide assurance to investors and creditors that the company’s financial statements are accurate and that the company is operating in a healthy financial condition.
Interim audits are different from annual audits in several ways. First, interim audits are typically less comprehensive than annual audits. Second, interim audits are often conducted by a different auditor than the auditor who conducts the company’s annual audit. Third, interim audits are typically focused on specific areas of the company’s financial statements, such as cash flow or inventory.
Despite these differences, interim audits can provide valuable information to investors and creditors. Interim audits can help to identify potential problems early on, and they can also help to ensure that the company’s financial statements are accurate and up-to-date.
Here is a brief explanation of each option:
- Option A: Continuous examination of accounts. This is not an accurate description of an interim audit. An interim audit is not a continuous examination of accounts. It is an examination of a company’s financial statements that is conducted at a point in time other than the end of the company’s fiscal year.
- Option B: Intermittent examination of accounts. This is an accurate description of an interim audit. An interim audit is an examination of a company’s financial statements that is conducted at a point in time other than the end of the company’s fiscal year.
- Option C: Audit work to find and check the interim profits of a company. This is not an accurate description of an interim audit. An interim audit is not conducted to find and check the interim profits of a company. It is conducted to provide assurance to investors and creditors that the company’s financial statements are accurate and that the company is operating in a healthy financial condition.
- Option D: Carrying on audit for bonus purpose at the end of the year. This is not an accurate description of an interim audit. An interim audit is not conducted for bonus purpose. It is conducted to provide assurance to investors and creditors that the company’s financial statements are accurate and that the company is operating in a healthy financial condition.