Can Anyone Explain The Differences Between Accounting And Auditing?

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.

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