Difference between accounting and audit

Accounting and Audit are separate processes that a companies need to do to prepare, monitor and report their financial information. Those processes are required to build trust in the companies’ financial statements, which are important for the assessment of the financial healthiness of the companies when they are trying to raise loans, when the companies are assessed for tax payments and when the shareholders of the companies assessing their investments, etc. 


Accounting involves handling the daily financial transactions, such as cheques/cash payments and receipt, interest expenses and income, bank drafts, bank T/T, payments for expenses, sales invoices issuance, and bank transfers, payroll, along with the reconciling of the company books for the year, etc.  All those activities are accounting processes.  The companies perform accounting work continuously with the goal of the preparation of the companies’ financial statements.    


An audit involves the review of the accounting books of the company, which are performed annually, quarterly or on needed basis. There are many different types of audit, such as internal audit, which are usually conducted by the companies themselves, and external audit, which are usually done by external audit firms. The audit process is an in-depth examination of each financial transaction made by a company. Upon the completion of the audit, audit reports would be produced to report to the audit findings. 

Differences between Accounting and Audit 

As stated above, accounting and auditing are two different processes.  There are many differences between them. One major difference is that audit helps to checks the accounting process to determine its validity; this in term proves the fairness of the financial statements generated from the accounting process; while, accounting is a daily routine process to record the financial transactions for the preparation of the financial statements.  
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