Difference between Accounting and Auditing

When looking closely, accounting and auditing are integral parts of any organisation. For students, these two subjects are crucial for financial management. When you study your preferred course and get hired in any posts like accountant, accounting clerk, accounting secretary, etc., your career graph shoots up in the right direction.

If auditing has been your subject of interest and you get the required certification to become an auditor, you can juggle job roles like that of an auditor, tax analyst, and tax accountant, to name a few. In this blog that deals with accounting vs. auditing, you get sumptuous knowledge that would help you better understand the subjects at hand.

Key Takeaways

• Types of Accounting: A Quick Look!

• Key Differences Between Accounting and Auditing

• Accounting Vs. Auditing: Key Differences

• Online Coaching for Accounting and Auditing Study Preparation

Types of Accounting: A Quick Look!

There are various types of accounting, each concerned with a particular aspect of finance. These include:

Financial accounting is a full-on analysis of financial transactions for businesses, ranging from data examination, evaluation, and preparing reports of the financial business of an organization. 

• Tax Accounting: This includes:
• i. tax statements
• ii. tax payments, 
• iii. tax return filing for individuals or businesses.
• Managerial Accounting: It helps present financial records with coherence, aiding in data-driven decision-making processes. The process is also called management accounting. 
• Cost Accounting: This type of accounting deals with the analysis of a business's cost structure. 
• Social Responsibility Accounting: This involves looking into the expenses associated with the environmental or social welfare efforts of an organization.
  

Key Differences Between Accounting and Auditing

Let’s take a look at auditing vs accounting:

• Accounting refers to the process of analysing, scrutinising, recording, and maintaining a transparent picture of the financial transactions of an organisation. On the other hand, auditing analyses financial statements critically to offer an opinion about how fair these are. 
• Accounting involves recording financial transactions every day. It is a daily task for an organisation or business. However, the process of auditing is systematic. Every year, it is done after the preparation of financial statements and final accounts.
• Accounting is focused on current financial activities and transactions. However, past financial statements are the focus of auditing.
• When it comes to auditing vs accounting, accounting is done in a lengthy and detailed way. It covers all the important details associated with financial statements, records, and transactions. The financial statements and records are used as samples by auditors. 
• Accounting is focused on financial statements and transaction recording, and presentation. On the other hand, the accuracy of the financial statements is verified by auditors. Auditors determine whether the financial position of a business is genuinely represented by the financial statements. 
• Accounting determines the financial performance, profitability, and position of a business. However, auditing aims to find out whether its financial statements and reports are credible. 
• Generally, an accountant is an employee of a company and has to perform accounting tasks. However, it is usually an external agency or person who handles auditing tasks. 
• The management of a company takes the call of appointing an accountant. A regulator or any of the shareholders appoints an auditor.    
• It is the management that determines the salary of an accountant. The shareholders decide upon the fee of an auditor.

Accounting Vs. Auditing: Key Differences

Aspect	Accounting	Audit
Purpose	Understanding economic activities	Expressing an opinion on the accuracy of financial information
Process	Captures and categorises monetary transactions	Examines financial statements and related documents
Outcome	Summarises transactions for easy viewing	Identifies errors, fraud, and manipulation
Primary Task	Providing financial information for an organisation	Ensuring the accuracy and reliability of financial statements
Areas	Cost accounting, management, tax, financial, HR, social responsibility accounting	Internal audit, risk management, forensic accounting, and so on.
Clients	Organisation and management	Stakeholders, regulatory bodies, shareholders
Focus	Daily transactions and financial statements	Overall financial health and compliance
Examination Scope	Internal financial operations	External and internal financial records and controls
Importance	Helps in decision-making and financial planning	Ensures transparency and credibility
Frequency	Continuous process	Periodic, usually annually or semi-annually

How Can Online Coaching Help You with Accounting and Auditing Study Preparation?

You can easily benefit from online coaching centres like NorthStar Academy that help you prepare for accounting and auditing studies. Here’s how:

Learning Management Systems

Top-notch online coaching centres can help you get personalised learning experiences with advanced learning management systems. Instructors and mentors can help you easily access study materials, resources, and suggestions that cater to your specific preferences, study patterns, and comprehension ability. 

You can track your progress throughout your study preparation journey and identify all the weak areas in your study that improve. Experienced instructors can offer quality tips and suggestions that give you the best chances for exam preparation. 

Interactive Learning Modules

You can quickly access interactive learning modules and other high-quality study materials, such as video lectures, mock test papers, practice question papers, and more. All such resources are compiled properly by experienced instructors. These are designed to cover all aspects of accounting and auditing and cover the entire exam syllabus comprehensively. The interactive study materials can make it easier for you to understand all the complex finance and accounting concepts.

Constant Support and Motivation

It can be easy for you to obtain continuous support from experienced instructors. Throughout your exam preparation, you can get guidance and emotional support. Apart from the mentors and instructors, you can get support from virtual study groups, discussion forums, and online chat rooms. 

You can interact with peers easily and be in constant touch with them. It is important to feel the presence of a mentor while pursuing a certification course. The right mentor assists you with your studies and puts equal focus on helping you drive away the negativities, anxieties, and more while you prepare for the exam. 

Flexibility 

Online coaching centres allow you to study at your own pace. There is no need to fit your study schedule and lifestyle with classroom education. As long as you have a laptop/ mobile device and an internet connection to access lectures and other study materials, you can study conveniently. 

So, if you are already working as a professional, have loads to pull off on the personal forefront, and are serious about cracking the exam that you have enrolled in, a top online coaching centre acts as the catalyst in assisting you to move ahead towards your career goals.

Conclusion

When it comes to the difference between auditing and accounting processes, both are essential subjects in the financial domain. After passing accounting and auditing exams, you can get lucrative jobs in top accounting firms worldwide. However, the study preparations can be quite a tenacious and rigorous process. A top online CPA coaching centre such as NorthStar Academy can be invaluable for you in preparing for these exams. You can get the advice, support, and guidance of our expert mentor, M Irfat Sir, who has helped thousands of students’ flourish in accounting and financial careers domestically and internationally. Join this online coaching centre and be an esteemed professional.