Distinguish between Auditing, Accounting and Investigation

Auditing and Assurance Revision Questions and Answers

Answer

reviews the efficacy of recording of financial information.Therefore,both are quite distinct and different from each other.Strictly speaking begins where accounting ends.

Auditing also is different from investigation,which is another significant service rendered professional accountants.Auditing and investigation differ in objectives and in their nature.Auditing is general while investigation is specific.The object of auditing is to ensure that the financial statements are free and fair and not misleading or unreliable.The merit of auditing lies in its ability to pronounce in general terms whether the accounts are basically reliable or not and in accordance with the legal requirements and regulations applicable to the particular audit.Audit is not based on suspicion unless circumstances exist to arouse suspicion to the auditor.



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