difference between accounting and auditing

1. ACCOUNTING THEORY
DIFFERENCE BETWEEN
ACCOUNTING AND AUDITING

2. Meaning of accounting
• Accounting is the process of systematically
recording, measuring, and communicating
information about financial transactions.

3. Meaning of auditing
• An examination and verification of a company's
financial and accounting records and
supporting documents by a professional, such as
a Certified Public Accountant is called auditing.

4. Difference between accounting and
auditing.
1. Meaning :-
Accounts : Accounting means the maintaining of
the books of accounts.
Audit : Auditing means examining the books of
accounts and reporting means to report about their
accuracy.
2. Performance Of Work :-
Accounts : Accounting job is performed by the
accountant.
Audit : Auditing job is performed by the auditor.

5. 3. Appointment :-
Accounts : Accountant is appointed by the
management.
Audit : Auditor is appointed by the share holders.
4. Nature Of Job :-
Accounts : Accountant job is a mechanical nature
Audit : Auditor job is is not so mechanical in that
sense.
5. Qualification :-
Accounts : For the accountant no specific
qualification is required.
Audit : For the auditor specific qualification is
required.

6. 6. Responsibility :-
Accounts : Accountant responsibility is fixed by
the management.
Audit : Auditor responsibility is fixed by law.
7. Submission Of Report :-
Accounts : Accountant is not required to submit
any report.
Audit : Auditor is required by law to submit the
report.
8. Fixation Of Rights :-
Accounts : Rights and duties of accountant are
fixed by the management.
Audit : Rights and duties of an auditor are fixed by
the law.

7. 9. Time :-
Accounts : In case of accounting, period is usually
one year.
Audit : The period of auditing is usually less than
one year.
10. Purpose :-
Accounts : Accounting purpose is to show the
financial position of the business.
Audit : Auditing verifies the true picture of the
financial statement.
11. Record / Data :-
Accounts : Accounting is related with the present
record.
Audit : Auditing is related with the past record.

8. 12. Employment :-
Accounts : Accountant is a permanent
employee.
Audit : Auditor is not a permanent employee.
13. Reward :-
Accounts : Accountant reward is called salary.
Audit : Auditor reward is called free.
14. Knowledge :-
Accounts : Accountant must have the
knowledge of accountancy.
Audit : Auditor must have the knowledge of
accounting as well as auditing.

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