- 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.
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The financial statement user has access to a wide range of data sources in the analysis of financial statement. The beginning point should always be the financial statement themselves and notes to the financial statement. Financial statement provides the major information as required by the financial analyst at the time of converting financial information into …View full post
A market is the means through which buyers and sellers are brought together to aid in the transfer of goods and services. A market need not have a physical location. It is only necessary that the buyers and sellers can communicate regarding the relevant aspects of the transaction. The market does not necessarily own the …View full post
Difference between Accounting and Auditing
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