Accounting
is related to the collection, recording, analysis and interpretation of
financial transactions but auditing refers to the examination of books of
accounts along with the evidential documents. There is any differences between
Accounting and Auditing :
1. Meaning
Accounting
is the act of collecting, recording, analyzing and interpretation of financial
transactions but auditing is the act of examination of books of accounts and
evidential documents, so as to prove the true and fair view of profitability
and financial position.
2. Beginning Of
Work
Work
of accounting begins when financial transactions take place but work of
auditing begins when work of accounting ends.
3. Scope
Accounting
prepares profit and loss account and balance sheet and other statements as per
the instruction of auditor but auditor checks the books of accounts considering
their fairness as well as complying with the provision of company act or not.
4. Nature Of
Work
Accounting
keeps the record of financial transactions but auditor checks and verifies the
books of accounts.
5. Staff
An
accountant is a staff of an organization and draws the salary from the business
but an auditor is an independent person who is appointed for specific period
and gets a sum of remuneration.
6. Preparation
Of Report
An
accountant does not prepare report after the completion of his task but he has
to give information to the management when needed but auditor needs to prepare
and present report after the completion of his work to the concerned authority.
7.
Responsibility
An
accountant remains responsible to the management but an auditor is responsible
to the owners or shareholders.
0 komentar:
Posting Komentar