Advantages

1. It is ideal for dynamic businesses.

2. Compared to continuous audits it is cheaper.

3. It facilitates final audits.

4. Up to date accounts are kept.

5. Errors and frauds are prevented and detected at an early stage compared to final audits.

Disadvantages

1. Errors are at an advanced stage compared to continuos audits.

2. Over dependence on audit staff to solve accounting problem.

Note that

An interim audit is usually carried in preparation for the final audit at which the financial statements will be reviewed.