Accounting and Auditing Differences
Accounting and Auditing Differences
1. The main difference between auditing and accounting is that accounting is related to the collection, recording, analysis and interpretation of financial transactions while auditing refers to the examination of books of accounts along with the evidential documents. However, both processes are concerned with the accounting records of a business.
While, audit report are reliable by the users for few reasons such as :
a) To verify some information needed about the company because usually its impractical that they would walk in to the premise and ask about the company because its cost them high.
b) To share information risk with management because management will be totally responsible for providing reliable financial statement to the users such as investor, where if inaccurate financial statement been provided and loss been incurred then management can be legally charged.
c) To make decision on how the company is performing because auditing usually will be handled by any independent body where they will give a very true and fair view while the audit report will be complete, accurate and unbiased.
2. Differences between auditor and accountant Differences Auditor Accountant
Objective
Focus on existing accounting transactions and classifications, making sure they are reasonable and correct.
Focus on current information, dealing with day-to-day issues, closing the books and making sure tasks such as paying bills are done properly.
Reports
Auditors present reports to management on findings
(discrepancies or errors found).
Accountants often issue reports on existing information, such as budget vs. actual reports, accounts receivable and etc.
Employment
Status
Not an employer of the company
An employer of the company
3. Differences between compliance auditing and operational auditing
Differences
Compliance auditing Operational auditing
Functional
1. The main difference between auditing and accounting is that accounting is related to the collection, recording, analysis and interpretation of financial transactions while auditing refers to the examination of books of accounts along with the evidential documents. However, both processes are concerned with the accounting records of a business.
While, audit report are reliable by the users for few reasons such as :
a) To verify some information needed about the company because usually its impractical that they would walk in to the premise and ask about the company because its cost them high.
b) To share information risk with management because management will be totally responsible for providing reliable financial statement to the users such as investor, where if inaccurate financial statement been provided and loss been incurred then management can be legally charged.
c) To make decision on how the company is performing because auditing usually will be handled by any independent body where they will give a very true and fair view while the audit report will be complete, accurate and unbiased.
2. Differences between auditor and accountant Differences Auditor Accountant
Objective
Focus on existing accounting transactions and classifications, making sure they are reasonable and correct.
Focus on current information, dealing with day-to-day issues, closing the books and making sure tasks such as paying bills are done properly.
Reports
Auditors present reports to management on findings
(discrepancies or errors found).
Accountants often issue reports on existing information, such as budget vs. actual reports, accounts receivable and etc.
Employment
Status
Not an employer of the company
An employer of the company
3. Differences between compliance auditing and operational auditing
Differences
Compliance auditing Operational auditing
Functional