Distinguish between Audit and Investigation

Auditing and Assurance Revision Questions and Answers

Answer:

  Audit Investigation
Description Auditing is the independent examination of financial information of any entity, whether profit oriented or not, and irrespective of its size or legal Investigation means an inquiry, or is the act of detail examination of activities so as to achieve certain objectives.

 

  form, when such an examination is conducted with a view to expressing an opinion thereon  
Owners Audit is conducted for accountability purposes on behalf of owners who make the appointment. Investigation may be conducted either owner of the undertaking or an outsider.
Purpose To determine the true and fair view. Varies from business to business
Process Routine process Investigation is not a regular process
Scope It includes only an examination of the accounts of a business It covers an examination of the accounts bur also covers an inquiry into other matter that are connected with the purpose for which it is undertaken
Employees Does not examine personally May examine personally
Person performing work Audit is to be conducted a chartered accountant or person recognized regulatory body. Investigation may be taking on even a non-chartered accountant
Legal Obligations Audit is mandatory under law There are no such legal obligations with regard to investigation



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