Distinguish between Accounting & Auditing

Auditing and Assurance Revision Questions and Answers
Point                   of

difference

 

Accounting

 

Auditing

1. Meaning It is recording of all the day to day transactions in the books of accounts leading to preparation

of financial statements.

It is the critical examination of the transactions recorded in the books of accounts.
2. Nature It is concerned with finalization of accounts. It is concerned with establishment

of      reliability       of      financial statements.

 

3. Objects Accounting commences when

book keeping ends.

Auditing begins when accounting

ends.

4. Commencement It involves various financial statements. It involves maintenance of books of

accounts.

It depends upon the agreement or upon the provisions of law.
5. Scope It does not go beyond books of

accounts.

It goes beyond books of accounts.



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