- Accounting is recording of all the day to day financial transactions in the books of accounts leading to preparation of financial statements. On the other hand, Auditing is the critical examination of the transactions recorded in the books of accounts and makes a reasonable assurance.
- Accounting is concerned with finalization of accounts and ready to make financial statements. On the other hand, Auditing is concerned with establishment of reliability of financial statements by making a reasonable assurance by auditors.
- The objective of accounting is to ascertain the trading results of financial transactions. But the objective of auditing is to certify the correctness of financial statements prepared by the management.
- Accounting starts when book keeping ends. On the other hand, Auditing begins when accounting records.
- Accounting involves various financial statements for example, balance sheet, income statement, cash flows statement. Whereas, auditing depends upon the agreement or upon the provisions of law adopted by the regulatory authority.
- Accounting involves maintenance of books of accounts. And Auditing is more than maintenance of books of accounts.
A prospectus is an invitation to the public and general investors to purchase shares and debenture of a company. In other words, a prospectus may be defined as a document that contains notice, circular, advertisement demanding invitation for investment and deposits from the public and general investors for the subscription and purchase of offering share …View full post
The Audit Committee assists the members of the board directors in fulfilling its oversight duties and responsibilities. The audit committee usually consists of three members of the board of directors; all of them should be independent in accordance with applicable Securities and Exchange Commission (SEC) rules and listing standards and the company’s corporate governance guidelines. …View full post
An electronic fund transfer or electronic payments system is one kind of fund transfer system in which financial transactions are conducted via computer and electronic communications devices, without the need to transfer any physical token. It is the lack of a physical representation of money, such as coins or paper or some other physical exchangeable commodity, which characterizes electronic fund transfer …View full post
Substantive procedure is intended to create evidence that an auditor assembles to support the assertion that there are no material misstatements in regard to the completeness, validity, and accuracy of the financial records of an entity. Thus, substantive procedures are performed by an auditor to detect whether there are any material misstatements in accounting transactions. They …View full post
Financial management encompasses many different types of decisions. We can classify these decisions into three groups: investment decisions, financing decisions, and decisions that involve both investing and financing. Investment decisions are concerned with the use of fund the buying, holding, or selling of all types of assets: Should we buy a new die stamping machine. Should we introduce a …View full post
Nov 17 2012
Difference between Accounting and Auditing
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