If you are also interested in accounting, you may be wondering what the connection between auditing and accounting is and do not know how these two branches differ from each other, which makes them have a separate name. It is important to know that auditing is different from accounting and that an auditor has different responsibilities than an accountant. To understand these differences, we first need to examine the definition of accounting and auditing.
What is the definition of accounting and auditing?
There are several definitions for accounting, but if we want to refer to a comprehensive and complete definition, we can say that accounting, which is called “business language”, is a science that includes collecting, measuring, recording and processing an organization’s financial data and preparing financial reports. From this information to provide to managers of the organization; However, the audit process begins after the end of the accounting process in order to confirm or deny the accuracy of the information obtained.
In fact, accounting means the act of recording and maintaining documents and preparing and submitting financial statements, and auditing is the activity of approving and evaluating financial statements.
What is the purpose of accounting and auditing?
One of the differences between accounting and auditing is their purpose. Accounting is the language of business and is done by employees of the same company to track the financial transactions of companies. While the audit is performed with the aim of reviewing and verifying the validity of the prepared financial documents. Therefore, it determines the validity and reliability of accounting information. Unlike accounting, auditing is performed by individuals independent of the company in question.
Skills required for accounting and auditing
High accuracy and focus
High analytical power and perception
Power and problem solving ability
Honesty and integrity
Trust in company information
Self Confidence
Negotiation skills and articulation
Stability and responsibility
What are the duties of an accountant and the duties of an auditor?
One of the differences between accounting and auditing is their duties. Although many of the skills required for the two disciplines of accounting and auditing are similar, just as the purpose of accounting is different from the purpose of auditing, so the duties of an accountant are very different from those of an auditor. Among the duties of an accountant are the following:
Observance of various laws such as direct tax law, commercial law and other laws affecting this job
Record, review and adjust all types of accounting information and documents
Preparation and preparation of financial statements
Prepare a monthly list of employees’ salaries
Preparing a list of real and legal debtors and creditors
Checking matters, checking the due date of checks, and…
Collect and review documents related to company expenses
Handling disputes between the company’s accounts and the parties to the contract
And many other matters that are the responsibility of the accounting team of each collection.
But some of the auditor’s duties include:
Review and compare the company’s accounts with financial rules to ensure its accuracy
Analyze all information and statistics to ensure the accuracy of accounting reports
Evaluate the collection financial reporting system to ensure proper performance
The duties of an auditor, like that of an accountant, are not limited to the above and are very broad. But by comparing these cases, we also notice a significant difference between the two jobs of auditing and accounting.
Finally, according to the above points, we conclude that after the end of the accounting operation, it is time to audit to review all the data and reports provided by the accounting team, to ensure the accuracy of the accounts and their consistency with reality.