Difference Between Accounting, Auditing and Investigation 2021

Difference Between Accounting, Auditing and Investigation. It is an art of recording, classifying and summarizing financial information. check more details.

Raju Choudhary

Distinguish Accounting Auditing And Investigation

Distinguish Accounting, Auditing and Investigation, Difference between Accounting Auditing and Investigation. In this article you can find everything you want to know about Investigation, auditing and Accounting. Find Difference betweenDifferences Between Auditing And Investigation, Audit vs Investigation, Difference Between Accounting and Auditing. Recently we provide complete details forAccounting Concepts and ConventionsNow you can scroll down below and check complete details for “Distinguish Accounting, Auditing and Investigation”

Distinguish Accounting, Auditing and Investigation

1. Accounting:

It is an art of recording, classifying and summarizing financial information,transactions and events, and preparation of reports thereon. The main objective is to preparefinancial statements.

  • Management is responsible for maintenance of accounting system and preparation offinancial statements.
  • It involves in recording aspects of financial information.
  • It deals with measuring, recording, classifying, summarizing and communicating financialinformation to various stakeholders.
  • Its prime objective is to prepare financial statements exhibiting true and fair view.

Must Read –Capital and Revenue Expenditure Full Details

2. Auditing:

An audit is the independent examination of financial information of any entity,whether profit oriented or not, and irrespective of its size or legal form, when such anexamination is conducted with a view to expressing an opinion thereon. It is mandatory forcorporate assesses and voluntary for proprietorship/ partnership firm.


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  • Normal time period of coverage is one financial year.
  • Audit is carried out on behalf of owners.
  • It is conducted by a practicing Chartered Accountant.
  • Uses both type of audit evidences, persuasive as well as conclusive.
  • Test checking/sampling is acceptable audit technique subject to materiality concept.
  • Audit begins with no preconceived notion.
  • Format of audit report is prescribed.

Must Read –Meaning and Scope of Accounting

3. Investigation:

Investigation implies systematic, critical and special examination of the records ofa business for a predetermined specific purpose. It is a voluntary activity conducted at theinstance of management. Example: Special audit u/s. 233A, Oppression and mismanagement u/s.397-409.

  • Normal time period of coverage may be less than or more than one financial year
  • Investigation is carried out on behalf of owners / management/ third party.
  • It may be conducted by staff of the entity, Chartered Accountant or External Agency.
  • Only conclusive and corroborative evidences are seeked.
  • May cover any type of aspects, ex. Financial or non-financial
  • Detailed, exhaustive and through examination is required.
  • Investigation is started with preconceived notion.
  • No specific format is prescribed.

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Raju Choudhary

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