Question

as much as you can describes the relationship and differences between accounting and auditing.

Answer 1

Accounting is the process of identifying, measuring, recording of day to day financial transaction and preparing financials statements from the transactions in the reporting to various stakeholders.

The objective of auditing is the process of obtaining and evaluating evidence assertions about the financials transactions recorded are whether correct or not.

Differences

1)The objective of accounting is the preparation of financial statements and communication to stakeholders for decision making.

The objective of auditing is to obtain reasonable assurance from the auditors and to ensure financial statements are free from material misstatements and to give a true and fair opinion on the financial positions of the company.

2)

Accounting is a very comprehensive process involving receipt, entry and preparing reports.

Auditing is a process to check whether accounting has done correctly by checking some samples of accounting transactions.

3)

Accounting is a day to day process whereas auditing is a periodic exercise.

4)

Accounting of financial transactions is the responsibility of the management of the organization. Accounting starts when book keeping ends whereas auditing starts when accounting ends.