Both are generally done by the persons with an accounting degree. Both need a thorough knowledge of accounting basics and principles.

Many of the basic processes of both accounting and auditing are similar. Similarities between Accounting and Auditing: External audit is conducted by an external auditor, appointed by the shareholders. Internal audit is conducted by an internal auditor, usually an employee of the organization. The scope of auditing work is determined by the applicable laws.Īuditing has two main categories viz. The auditors, usually external, carry out the task of auditing under the provisions of the applicable laws on behalf of shareholders or regulators. Auditing is carried out after the final preparation of the financial statements and accounts.Īuditing involves carrying out the inspection and statutory audit of the financial statements, and giving a fair and unbiased opinion on whether the financial statements and records provide a true and fair reflection of the actual financial position of the firm. It is obligatory for all separate legal entities. Accounting is categorized in various branches like cost accounting, management accounting, financial accounting, etc.Īuditing refers to the critical examination of the financial records or statements of a business or an organization. Accounting is carried out almost continuously. Accounting is the specialized language of business.Īccounting work for an organization is done usually by its own employees. Accounting and Auditing are two very important processes related to the financial activities and records of an organization.Īccounting refers to the process of capturing, classifying, summarizing, analyzing and presenting the financial transactions, records, statements, profitability and financial position of an organization or entity.

Accounts basics in telugu pdf