The audit that is conducted between the two regular audits is:

Correct option is C

Ans. (c) Interim audit
Sol. An interim audit is conducted between two regular audits to ensure ongoing compliance and to identify any financial issues that might arise between the main audit periods.
Explanation of each option:
· (a) Internal audit – Incorrect. An internal audit is an ongoing process within the organization to review financial and operational activities but not specifically conducted between two regular audits.
· (b) Continuous audit – Incorrect. Continuous audit involves a real-time or ongoing audit process throughout the year, not just between two regular audits.
· (c) Interim audit – Correct answer. An interim audit is conducted between two regular audits, typically in the middle of a fiscal year, to review financial records and check for any discrepancies.
· (d) Final audit – Incorrect. A final audit is typically done at the end of an accounting period to evaluate the financial statements and ensure they reflect accurate financial status.