Describe the impact of the work performed during the interim audit on the final audit.

The impact of the work performed during the interim audit on the final audit can be described in the following steps:

1. Planning: During the interim audit, the auditor plans and designs the audit procedures to be performed. This includes understanding the client's business, assessing risks, and determining the scope of the audit.

2. Testing: The auditor conducts substantive testing during the interim audit to obtain sufficient and appropriate audit evidence. This may involve testing transactions, balances, and controls to assess the accuracy and completeness of the financial statements.

3. Identifying Issues: The interim audit helps in identifying any significant issues or areas of concern that may require further investigation or additional audit procedures. This allows the auditor to address these issues early on and provide recommendations for improvement.

4. Adjustments: Any necessary adjustments or corrections identified during the interim audit are communicated to the client. This ensures that the financial statements are accurate and reflect the true financial position of the company.

5. Efficiency: The interim audit helps in improving the efficiency of the final audit by reducing the amount of work required. Since some procedures have already been performed during the interim audit, the auditor can focus on areas that require more attention during the final audit.

6. Reliability: The work performed during the interim audit enhances the reliability of the final audit. By conducting procedures earlier in the year, the auditor can gather more evidence and have a better understanding of the client's operations, leading to a more thorough and reliable audit opinion.

Overall, the work performed during the interim audit has a significant impact on the final audit by providing a foundation for the audit procedures, identifying issues early on, improving efficiency, and enhancing the reliability of the audit opinion.