QS Study

Difference between Accounting and Auditing

Accounting is the recording, classifying summarizing of economic events in a logical manner for the purpose of providing financial information for decision making. Auditing is a systematic examination of books and records of a business or other organization, in order to the assertion or verifies and to report upon the facts regarding its financial operations and the results thereof.


  • Function: To provide certain types of quantitative information so that management can use to make a decision.
  • Quantification: In this profession, the person should be expert in Accounting.
  • Starting point: Function of Accounting arises before auditing.
  • Responsibility: Accounts responsibility to the management.
  • Legal Status: Accountants are internal person or employee.
  • Report: If need not to make a report after it.


  • Function: Its function is to determine whether recorded information properly reselects the economic events that occurred during the amounting period.
  • Quantification: The person must have passed CA Course.
  • Starting point: Function of Auditing arises after Accounting.
  • Responsibility: auditors are responsible to the shareholders.
  • Legal Status: auditors may be internal or external.
  • Report: It needs to make a report after it.