The audit is the systematic examination or inspection of
various books of accounts by an auditor and then it is followed by physical checking
of inventory to ensure that all departments are following a documented system
of recording all transactions. It is done to find out the accuracy of the financial
statements provided by the organization. Audit firms from Chennai and other cities can help you in this
process.
The Chief Differences
and Relationship between Accounting and Auditing
These are some of the points that differentiate between
accounting and auditing, in detail:
·
Accounting is an orderly way of
maintaining the records of the monetary transactions and then preparing the financial statements of the
company. Auditing is largely an analytical task which evaluates the financial
information and independently expresses an opinion which is fair and true.
· Accounting Standards presides over accounting,
whereas the standards on Auditing preside over the auditing.
· When compared to auditing, accounting is far simpler as a task.
Accounting is as the name suggests is performed by the Accountants. Auditing is
a much complex task and the task of auditing is performed by auditors.
· Accounting helps in revealing
the financial position, the profitability position and the performance of the
organization. Auditing, on the other hand,
helps check the correctness of the financial report.
· Accounting, unlike auditing, is a continuous activity. Auditing,
on the other hand, is a periodic
activity.
· Where the accounting ends the
auditing begins.
Accounting and Auditing are both important in their own ways
and specialized fields, but the scope of
auditing is much more than accounting as it is a thorough and painstaking
process. You need to consider several things
including various tax rules, acts. Also, knowing all about both
accounting standards and auditing standards fixed by auditors in Chennai, as having proper communication skills is very
important.
Apart from all the above points,
there are several other points to consider and are required like integrity,
confidentiality, honesty, and
independence they are all to be
maintained while you undergo the auditing process. When the auditor submits the
financial report, it becomes helpful for a host
of people such as investors, creditors, investors, debtors, suppliers,
customers, government and so on for proper decision making.
Though auditing is considered more important, it would be
foolhardy to consider accounting any less than auditing. There are several
things which you need to keep in mind while conducting accounting. It requires
you to have complete and in-depth knowledge of all the accounting standards,
conventions, principles, and assumptions too along with Companies Act rules and
tax laws. The truth is auditing cannot be conducted alone, the procedure of
auditing can only to be conducted when accounting outsourcing services are
conducted properly by accountants in
Chennai and other major cities, so, accounting cannot be neglected by hook
or by crook.
