Auditing Vs Accounting:
Audit and Accounting are quite different from each other. Accounting is the way to write financial transactions of an entity in a meaningful manner. There are several rules and regulations which accounting follows while handling a data. Audit is used to check the accounting process to determine its validity. Accounting is a routine activity and is carried out on daily basis whereas on the other hand Auditing is done monthly, quarterly or annually.
Audit is the process used to examine the Accounting process in order to detect errors and violations of rules if there exists any. Audit is done monthly, quarterly or annually. There is a specific team for performing audit it can be external audit team or internal audit team. Usually internal team mainly focuses on Pre auditing service to eliminate the chances of error. Auditing is very important to present a true picture of a financial data of an entity.
A financial organization come across through a lot of financial transactions on daily basis. It is essential to record these transactions in order to estimate profit or loss at the end. This data is stored in proper way and that way is known as Accounting. Accounting works on the principles of GAAT. These rules are same throughout different countries. Accounting consists of General, ledger, trail balance, income statement and balance sheet.
Main Difference between Auditing and Accounting:
The following are some of the major difference between auditing and accounting.
- Accounting is the process of recording financial data whereas Auditing is the process of examining that data to remove any errors if found any.
- Accounting follows different rules and regulations to store data whereas on the other hand Audit make sure that these rules are followed properly or not.