Difference between Auditing and Accounting?

Kane Dane

Accounting

Nature: It is constructive in nature as it is concerned with compilation of accounting information for preparing Profit and Loss Account and Balance Sheet.
Scope: Its scope is restricted to preparation of financial statements and their interpretation.
Qualification: No formal qualification has been recommended.
Object: The main object is to find out operating results and financial position of the business.
Commencement: It starts where book-keeping ends.
Reporting: The Accountant is not required to submit a report on the accounts and statements prepared by him.
Basis of Remuneration: The Accountant is paid monthly salary.
Appointment: The Accountant is an employee of the business ordinarily on a permanent taxes.
Level knowledge: An accountant is not required to have knowledge of audit techniques and procedures.
Duration: The accounting work conducted throughout the year.

Auditing

Nature: It is analytical in nature and is concerned with checking and verification of financial statements.
Scope: It is determined by the agreement between auditor and his client.
Qualification: An auditor must be a qualified Chartered Accountant.
Object: The main object is to ascertain truth and fairness of financial statements and comment thereon.
Commencement: It starts where accountancy ends.
Reporting: The Auditor has to submit a report about correctness and presentation of accounts audited by him.
Basis of Remuneration: The Auditor gets a fixed remuneration as per agreement with his client.
Appointment: The Auditor is an independent outsider appointed on contractual basis for a year.
Level knowledge: An Auditor must have knowledge of accounting as well audit techniques arid procedures.
Duration: The Audit may be conducted at the end of the year or throughout the year.