Objects: The object of auditing is to find out whether Financial Statements give a true and fair view of business. Investigation is undertaken to know the essential facts about a matter under inquiry. It is done with some special purpose of view.
Period: Auditing usually covers one accounting year. Investigation may cover more than one accounting year.
Legally Binding: Auditing is conducted for proprietors or is normally legally binding. Investigation is carried out on behalf of any party interested in the matter.
Scope: Auditing is legally compulsory for companies & restricted to the financial statement. Investigation is voluntary and carried out on certain circumstances & may be carried out beyond the financial statement.
Time: Auditing may be conducted at the year end. Investigation may be conducted at any time in case of suspicion about any transaction.
Report: In auditing form of report is prescribed. In investigation it is not prescribed.
Appointment: In auditing appointment is made shareholders in AGM. In investigation appointment can be done other delegated authorities.
Qualification: Auditors qualification is prescribed Laws. Investigators qualification has not prescribed Laws.
Re-work: Re-audit is not generally carried out. Re-investigation may be carried out.
Perception: Audit is not carried out with doubtful mind. Investigation may be carried out with doubtful mind.