Definition of auditing & Dissimilarity connecting - Auditing and Accounting
Summary: An audit typically gets one to two we...
01. Accounting: Accountancy is to record the contract in the book of accounts, removal of
trial balance, preparation of Tr...
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Definition of auditing & dissimilarity connecting auditing and accounting


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Definition of auditing & dissimilarity connecting auditing and accounting

  1. 1. Definition of auditing & Dissimilarity connecting - Auditing and Accounting Summary: An audit typically gets one to two weeks, and involves "an assessment of ledgers, journals, bank accounts, sales invoices, purchase vouchers, and expense accounts." They go on to point out that the audit process and seeking information and assistance from organization workers. An auditing procedure that inspects accounting observes incessantly during the year. Incessant audits are usually skill driven and intended to automate error checking and data proof in real time. Introduction: Generally we know that a financial statement means the balance sheet and profit & loss accounts. The financial statement provide the actual financial position or financial information in an organization or business, The opinion on financial information is articulated after examination and verify of books of Accounts documents, records & voucher and go on to point out the true and fair financial position or result of operations in an organization. For complete all this prosecutions the owners of the business would appointed a person to check the accounts documents with determining the accuracy and reliability accounting statement & reports. Those appointed person who completely the accounts examined and tender a report to the authority as a rule the person is a auditor, and his profession of accounts examination, verify and obtainable report all this task typically we called auditing, Author note: A lot of analyst and authors has illustrated about the “definitions of auditing” although they elucidated very well but at times it's actually complex to recognize for the learners clearly. I had a dreadful experience when I was a learner. Now, as a financial analyst I felt to write this matter in a very and easy way so that the learners/professionals don't have to go door to door to understand this. Below is my definition of auditing and others importance matters that related with auditing. I hope a student, learner & auditors will be helpful from this, Definition of auditing: audit is a process of examining and verifying a company’s or organizations financial records and supporting documents, this audit process is a step by step systematic appraisal of a company's operating systems. that properly drawn up so as to exhibit a true and fair view of the financial state of affairs of the business financial period. “Dissimilarity connecting Auditing and Accounting “ Most of the public confuse about the auditing and accounting, the confusion arise due to the most auditing is usually concern with accounting information and many auditors have considerable expertise in accounting matters. Basically the general public confusion are increased by the designation “certified public accountant (CPA) or chartered accountant (CA) but the designation holder perform audit, Before make discussion about auditing, I think it is necessary to explained “Dissimilarity connecting Auditing and Accounting “it will helpful for leaner to clear understand about the auditing process and accounting method, below I have presented “Dissimilarity connecting Auditing and Accounting “
  2. 2. 01. Accounting: Accountancy is to record the contract in the book of accounts, removal of trial balance, preparation of Trading and profit and loss account and balance sheet etc. 01. Auditing: Auditing is the examination of books of account and scrutiny the financial statement for the purpose of finding out the true and fair position and results of action of a concern 02. Accounting: The auditor is asked to write the books of accounts, remove an agreed trial balance and profit and loss account and Balance sheet; he would be doing the work of an accountant and not the work of an auditor. Grounding of account is not the part of auditing. 02. Auditing: An auditor, using his assigning power, needs to check methodically, whether the Profit and Loss account and the Balance Sheet have been properly haggard up and revel the 'true and fair view' of the state of relationships and results of operation of the concern and report it to the gathering attracted. 03. Accounting: Auditing without the prior continuation of accounts is not possible. 03. Auditing: The accountant finishes his work, the auditor starts his work. 04. Accounting: all the Accountants are not auditor. 04. Auditing: the all auditors are accountant 05. Accounting: An accounting has to record the transactions in the books of accounts. 05. Auditing: An auditor has to check and verify such transactions and accounts and send a report to the person who appointed him. Conclusion: I further of considerate accounting - the auditor must process capability in the gathering and the explanation of audit evidence. this proficiency that differentiates auditors from accountants formative the proper audit procedures deciding the number and types of items to test and evaluating the results are problems unique to the auditor.