An interim audit is conducted between two annual audits to assess interim earnings, enabling the company to declare an interim dividend or evaluate share value. This audit involves a comprehensive review of transactions and up-to-date records and accounts, occurring between two balance sheet audits.

Typically, auditors perform the interim audit on a client’s financial statements for a period of six to nine months. This approach benefits auditors by reducing their workload during the final audit at year-end, although not all audit activities may require this, depending on the auditor’s policy.

Additionally, an interim audit may be requested by the client, necessitating a review of their interim financial statements on a quarterly basis.