Answer
A continuous or concurrent audit is one in which the auditor’s staff is engaged continuously in checking the accounts of the client the whole year round or when for this purpose the staff attends at intervals, fixed or otherwise, during the currency of the financial period.
A final or annual audit on the other hand is commonly understood to be an audit which does not begin until the books have been closed at the end of the accounting period and thereafter is carried on continuously until completed.
Whether an audit ought to be conducted continuously or after the close of the financial year should be decided on a consideration of the size of the business and the extent of detailed checking required.