Difference between Auditing and Accounting?

The main points of difference between accounting and auditing are:


  • 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.


  • 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.

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