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Accounting and auditing are two fundamental aspects of financial management, but they serve different purposes:
Accounting is the process of systematically recording, measuring, and communicating information about financial transactions. Accountants prepare financial statements, track expenses and revenues, forecast future profits, and handle tax preparation. It's a continuous process that provides a detailed record of a company's financial history and current standing1.
Auditing, on the other hand, is the examination and verification of a company's financial statements and records. Auditors review the work done by accountants to ensure accuracy and compliance with regulatory standards. They look for discrepancies and confirm the reliability of financial reports. Auditing typically occurs at the end of the fiscal year or at set intervals and is a periodic process2.
In summary, accounting is about creating the financial records, while auditing is about verifying those records to ensure they present a true and fair view of the company's financial performance and position.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.www.investopedia.com/articles/professionals/12041…keydifferences.com/difference-between-accountin…askanydifference.com/difference-between-accounti…difference.guru/difference-between-accounting-an…ca.indeed.com/career-advice/career-development/…- People also ask
- 1. Audit planning and preparation:Audit preparation consists of planning everythi…
- 2. Audit execution: The execution phase of an audit is often called the fieldwork. It i…
- 3. Audit reporting:The purpose of the audit report is to communic… See more
- 1. A first-party auditis performed within an organization to measure its strengths an…
- 2. Asecond-party audit is an external audit performed on a supplier by a customer o…
- 3. A third-party auditis performed by an audit organization ind… See more
ASQ certification is a formal recognition that you have demonstrated a proficiency within, and comprehension of, a specific body of knowledge. In 2016, ASQ Certification exams … See more
ISO 19011:2018defines an audit as a "systematic, independent and documented process for obtaining audit evidence [records, statements of fact or other information which are relevant and verifiable] and evaluating it objectively to determine the extent … See more
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