Thursday, June 21, 2007

#10 Difference between Accounting and Auditing ( from Financial Perspective)

Back to a fundamental question, what is the difference between accounting and auditing from a financial perspective?

A quick answer is: Accounting is a process of preparing the works, Auditing is a process of evaluating & scrutinizing of the work prepared.

In other words, accountants are in charged of the day-to-day duties of maintaing the accounts, implementing the board financial strategy, if any. At the end of the period, accountant would produce Financial Statement, a summary report of the financial performance throughout the period. Whereas, auditor conduct a check on the accuracy of the financial statements, to ensure that there is no material misstatement of the financial statement prepared.

14 comments:

Anonymous said...

Helpful

jian said...

Thanks. It's a great help. ^^

Anonymous said...

Thanks for making it so simple!

Anonymous said...

thank you it's really helpful

Mary said...

its really of great help to me

Anonymous said...

Very helpful basic info...thanks! :)

Anonymous said...

Very helpful basic info...thanks! :)

valencia said...

Thank you great answer. Short and sweet.

valencia said...

Thank you, its a great and clear answer. Short but valid.

valencia said...

Thank you great answer. Short and sweet.

valencia said...

Thank you great answer. Short and sweet.

Anonymous said...

Hanane from morocco said :
very helpful thank you soo much

Anonymous said...

Simplified with good points

Anonymous said...

Thanks a lot...helped me with my sister's homework