Accounting is concerned with the preparing of financial statements while auditing is concerned with checking of financial statements. The purpose of accounting is to show the performance and financial position of a business. The purpose of auditing is to certify the true and fair view of financial statements.
Accounting requires that an accountant must have accounting knowledge while auditing work required that an auditor must have accounting as well as auditing knowledge. Accounting is concerned with current data. It is constructive in nature. Auditing is concerned with past data. It is analytical in nature. The time period of accounting is usually one year. It takes one year to complete record. The time period of auditing is usually less than one year. It may be completed within one month.
The accountant is permanent employee of the business. The auditor is an independent person. The work of an accountant starts when the work of the book keeper ends. The work of an auditor starts when the work of accountant ends. An accountant may not be a chartered accountant as per law. An auditor must be chartered accountant for public companies. The accountant has no liability for preparing final accounts. The auditor has liability after presenting audit report.
The main distinction between auditing and accounting are as follows: 1-From the objective aspect The accounting aims to record the financial transactions in a way that will enable the accountant to prepare the financial statements at the end of the period. But the auditing will enable the auditor to be sure that the financial transactions are correct and accurate according to the generally accepted accounting principles. 2-From the appointment aspect The accountant is hired by the company’s management. Auditor is hired in the General Assembly meeting by the shareholders based on the company’s law and other related laws. From the Subordination aspect The accountant is an employee in the entity executing the orders and the policies of the management. Otherwise the auditor is independent and executes the professional auditing standards. 3-From work timing aspect The accountant’s work begins from the beginning to the end of the year, otherwise the external auditor’s work begins according to the conditions of the contract signed by the auditor and the company under audit. 4-From the standers used aspect The accountant should be used the generally accepted accounting principles to record the financial transactions in a way that will enable the accountant to prepare the financial statements at the end of the period. Auditor should be used the International Standers of Auditing and to be sure that the financial transactions are correct and accurate according to the generally accepted accounting principles.
5-From the Qualifications aspect The accountant should has general qualifications and is not independent of the company management, so he has reported directly to the company management. Otherwise, the auditor shall has special qualifications and he shall independent of the company's management, also the qualification of auditors are determined be the company’s law and others related laws.
The main objective of Accounting is to Record the transactions and the primary goal of Auditing is to Check what is recorded. Hence you can say "Auditing starts when Accounting ends".
Yes an accountant objective is to provide useful financial information in the form of financial statements, about the firm financial position to the users of the information i.e. Stakeholders . An auditor give an opinion, whether the financial statements generated by the accountants are fairly presented. Note.they don't give a gurantee that the financial information are accurate.
An auditing simply means the properly checkup of business transaction enter by the accountant. Accounting is keeping record of day to day business activity transaction.crediting and debiting of income and expenditure in a general legal of an account. Auditing is the properly checkup of accounting report.
From definition of both accounting and auditing, it is clear that both make use of accounting information to carry out their respective works. Both preparation of accounting information as well as auditing the same statement by an auditor requires conformity with statutory regulations. These are the little I know, please feed me the others if there is still any available
A bit of a correction. Auditors never certify anything. Certify is a technical term which sends out a wrong image to users of financial information. More specifically when an auditor certifies (which he should never) it means that he is stating that the financial statements are completely free from misstatements. Of course due to the inherent limitations of audits we as auditors can only provide reasonable assurance which although is a high level of assurance, is not absolute (ISA 200 - Overall Objectives of an Audit)
From the top of my head, a difference between accounting and auditing is that they are governed by two separate standard-setting bodies. Accounting by the IASB (international accounting standards board) and auditing by IAASB (international auditing assurance board)
Yes, the relationship has to do with accounting for where funds have gone. With accounting you simply track the path of what has happened with the funds. With auditing, you're looking to find errors, corruption or other illegal activities that show up through research into the accounting records.
Accounting means to record all the transactions took place throughout the year and record them in your book of accounts. & Auditing means to check these book of accounts and issue audit report.
This the main difference between accounting and auditing.
Yes, because accountant are creates the material than only auditor edit the material. With out accountant auditor can't able to play any roles in the company
Accounts means recording, classifying, summarising Of Transactions. Where as auditing will be Done to Confirm about the Trueness & accuracy of the accounts. In My words, auditing is the post mortem of Accounts. Auditing is on Accounts.. -A.K. Shenoy
Accounting means to record all the transactions took place throughout the year and record them in your book of accounts. & Auditing means to check these b
Accounting is posting transaction of the day to day business. Money in, Money out and making adjusting entries in the G/L.
Auditing is the reviewing of Accounting records to prove all was entered properly and no fraudulent entries were made. Auditing is much more detailed, as every entry is questioned. It is very time consuming.
Accounting is used to communicate the financial report of an orgsnisation and help accountant to provide the financial information will help the organisation to achieve it's sole aim of maximizing profit.Accountant is also responsible for the provision of set of accounting system and prescribe the most easily one to help the firm achieving their goal while auditing information helps an auditor to evaluate the financial statement provided by the accountant and give is on opinion at the end of the investigation
Auditing is the checking of a companies records checking if it shows the true and fair view of the company by checking if it is correctly done according to the standards required, and detecting possible errors or mis-presentation of the the final accounts.
Accounting is what you or your employee does for the business and Auditing is what the IRS does to you to make sure your financial procedures are correct.
