7 Difference Between Accounting and Auditing

Accounting and Auditing are two processes which are used to record or check the financial transactions of any organisation. Accounting is the process of recording and analysing the financial transactions of a organisation in a systematic system. While auditing is the process of checking the accuracy and transparency of the financial transactions.

Accounting and auditing are very important for any organisation. In this article we will discuss in detail about accounting and audit. We will also discuss difference between accounting and auditing.

Accounting vs Auditing

Sr. No.	Accounting	Auditing
1	Process in which financial and monetary transaction are recorded systematically.	Process in which inspection and checking of financial transactions is done.
2	Starts When bookkeeping ends	Starts when accounting ends.
3	Done by the accountant.	Done by the auditor.
4	No need of special or higher education for accountant	Ca is required for an auditor
5	Necessary for all the business and organisations as day to day.	Not necessary to day to day.
6	Used to find the financial position and performance of the organisation	Useful for adding creditability to the financial and monetary transections
7	Accountant doesn’t prepare any financial report	Auditor prepares the report on the bases of the audit.

Accounting

Accounting is a systematic system to keep records of all financial transactions. By accounting it’s become very easy to find the revenue and profit of the organisation. Accounting is the next step of Bookkeeping, which means accounting starts when bookkeeping ends. Accounting is done by the accountants. All the monetary transaction is recorded with High accuracy. Accuracy is very important because this data is used for the balance sheet.

These days accounting is done with the help of computer software like excel. No need of higher or special education needed for an accountant. These days accounting is very necessary for all businesses and organisations. Accounting is referred to the day to day keeping records. Main objective of the accounting is to find the performance, financial position in the market and the profitability of the organisation.

Accounting is done for the accurate records of the all financial and monetary transections. Accounting is used to find the profit and loss of the organisation in an effective way. Account statement is used to make the important decision of the organisation. This is also used for the determination of the liquidity and solvency position of the organisation.

Auditing

Auditing is the inspection and the checking the transparency of the financial transactions and statements of the company. Auditing is done by the auditor, for an auditor it is essential to have a ca degree. Auditing is always starts when the auditing ends. In the auditing process an auditor checks the accounts statement, ledgers and other aspects which are related to the finance.

In other works, audit is a process in which group and team of the auditors came to the organisation and checks the organisation works, products, management, and financial activities. In the Audi auditors checks how fairly organisation works. In this auditor checks are organisation full full the all guidelines which are fixed by the government.

In auditing auditors checks the tax paid or not by the organisation. Labour and manpower account are clear or not. After completing the auditing auditor makes a report of the auditing and give to the organisation. Auditing is very necessary because these days’ organizations do frauds in their financial transactions. Due to the auditing their fraud comes in front of the government.

Main differencee between accounting and Auditing

1. Accounting is a process in which financial and monetary transaction are recorded systematically. While auditing is a process in which inspection and checking of financial transactions is done.
2. Accounting starts When bookkeeping ends. Auditing starts when accounting ends.
3. Accounting is done by the accountant. Auditing is done by the auditor.
4. No need of special or higher education for accountant. Ca is required for an auditor.
5. Accounting is very necessary for all the business and organisations as day to day. While auditing is not necessary to day to day.
6. Accounting is used to find the financial position and performance of the organisation. Auditing is useful for adding creditability to the financial and monetary transections.
7. In accounting accountant doesn’t prepare any financial report. While in auditing a auditor prepares the report on the bases of the audit.

Conclusion

Accounting and auditing have their own advantages for an organisation. In simple words accounting is record data of financial and monetary transections in a systematic way. Accounting is used to fine the Revenue and profit of the organisation. In the other hand auditing is a check of the all financial and monetary transections. Auditing obliged the organisation to follow all the rules which are formed by the government for the financial transactions.

This is all about the accounting and auditing. We hope this article will clear your doubts about the accounting and auditing. In case of any doubt please feel free to comment on us. For more interesting differencee between please visit our website.