Differences Between Auditing And Accounting

Accounting is related to the collection, recording, analysis and interpretation of financial transactions but auditing refers to the examination of books of accounts along with the evidential documents. So, following differences can be shown between auditing and accounting:

1. Meaning

Accounting is the act of collecting, recording, analyzing and interpretation of financial transactions but auditing is the act of examination of books of accounts and evidential documents, so as to prove the true and fair view of profitability and financial position.

2. Beginning Of Work

Work of accounting begins when financial transactions take place but work of auditing begins when work of accounting ends.

3. Scope

Accounting prepares profit and loss account and balance sheet and other statements as per the instruction of auditor but auditor checks the books of accounts considering their fairness as well as complying with the provision of company act or not.

4. Nature Of Work

Accounting keeps the record of financial transactions but auditor checks and verifies the books of accounts.

5. Staff

An accountant is a staff of an organization and draws the salary from the business but an auditor is an independent person who is appointed for specific period and gets a sum of remuneration.

6. Preparation Of Report

An accountant does not prepare report after the completion of his task but he has to give information to the management when needed but auditor needs to prepare and present report after the completion of his work to the concerned authority.

7. Responsibility

An accountant remains responsible to the management but an auditor is responsible to the owners or shareholders.

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Differences Between Auditing And Accounting

Accounting is related to the collection, recording, analysis and interpretation of financial transactions but auditing refers to the examination of books of accounts along with the evidential documents. So, following differences can be shown between auditing and accounting:

1. Meaning

Accounting is the act of collecting, recording, analyzing and interpretation of financial transactions but auditing is the act of examination of books of accounts and evidential documents, so as to prove the true and fair view of profitability and financial position.

2. Beginning Of Work

Work of accounting begins when financial transactions take place but work of auditing begins when work of accounting ends.

3. Scope

Accounting prepares profit and loss account and balance sheet and other statements as per the instruction of auditor but auditor checks the books of accounts considering their fairness as well as complying with the provision of company act or not.

4. Nature Of Work

Accounting keeps the record of financial transactions but auditor checks and verifies the books of accounts.

5. Staff

An accountant is a staff of an organization and draws the salary from the business but an auditor is an independent person who is appointed for specific period and gets a sum of remuneration.

6. Preparation Of Report

An accountant does not prepare report after the completion of his task but he has to give information to the management when needed but auditor needs to prepare and present report after the completion of his work to the concerned authority.

7. Responsibility

An accountant remains responsible to the management but an auditor is responsible to the owners or shareholders.

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Advantages Of Audit

Auditing has become a compulsory task in the business organization. All the organizations like business, social, industries and trading organizations make audit of books of accounts. Now-a-days, owner of business and its management are separate. So, to detect and prevent frauds, auditing has become essential. Its advantages are as follows:

1. Audit Helps To Detect And Prevent Errors And Frauds

An auditor's main duty is to detect errors and frauds, preventing such errors and frauds and taking care to avoid such frauds. Thus, even though all organizations do not have compulsion to audit, they make audit of all the books of accounts.

2. Audit Helps To Maintain Account Regularly

An auditor raises questions if accounts are not maintained properly. So, audit gives moral pressure on maintaining accounts regularly.

3. Audit Helps To Get Compensation

If there is any loss in the property of business, insurance company provides compensation on the basis of audited statement of valuation made my the auditor. So, it helps to get compensation.

4. Audit Helps To Obtain Loan

Specially financial institutions provide loan on the basis of audited statements. A business organization may obtain loan considering the audited statement of last five years. So, an organization should make audit compulsory to obtain loan.

5. Audit Facilitates The Sale Of Business

Valuation of assets is made by the auditor. On the basis of valuation of assets and liabilities, businessman can sell his business. It helps to determine the price of business.

6. Audit Helps To Assess Tax

Tax authorities assess taxes on the basis of profit calculated by the auditor. In the same way sales tax authority calculates sales tax on the basis of sales shown in the audited statement.

7. Audit Facilitates To Compare

An auditor instructs an accountant in the same way which helps to compare books of accounts of current year with the accounting of the previous year. So, comparing the accounts of current with previous years helps to detect errors and frauds.

8. Audit Helps To Adjust Account Of Deceased Partner

Valuation of all the assets and liabilities of the business is made by the auditor while auditing books of account. Such valuation helps to clear the amount of deceased partner.

9. Audit Helps To Present A Proof

If any case is filed against the auditor regarding negligence, auditor can present audited report as a proof to settle such case. So, it helps to present proof to settle such cases.

10. Audit Provides Information About Profit Or Loss

A businessman wants to know profit or loss of his business after a certain period of time. So, the owner of the business can get information about profit or loss after auditing the books of accounts.

11. Audit Helps To Prepare Future Plan

All the audited statements remain true and correct. Such true and correct account helps to prepare for the future plans.

12. Audit Helps To Increase Goodwill

Auditing shows the profitability and financial position of an organization which creates faith of public over the business. Thus, auditing helps to increase goodwill of an organization.

13. Audit Helps To Amalgamate The Company

Sometimes, same nature of organization may be amalgamated. Auditing makes valuation of assets and liabilities which helps to amalgamate the company. Purchaser of the company can accept such business organization on the basis of valuation made by the auditor.

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Advantages Of Audit

Auditing has become a compulsory task in the business organization. All the organizations like business, social, industries and trading organizations make audit of books of accounts. Now-a-days, owner of business and its management are separate. So, to detect and prevent frauds, auditing has become essential. Its advantages are as follows:

1. Audit Helps To Detect And Prevent Errors And Frauds

An auditor's main duty is to detect errors and frauds, preventing such errors and frauds and taking care to avoid such frauds. Thus, even though all organizations do not have compulsion to audit, they make audit of all the books of accounts.

2. Audit Helps To Maintain Account Regularly

An auditor raises questions if accounts are not maintained properly. So, audit gives moral pressure on maintaining accounts regularly.

3. Audit Helps To Get Compensation

If there is any loss in the property of business, insurance company provides compensation on the basis of audited statement of valuation made my the auditor. So, it helps to get compensation.

4. Audit Helps To Obtain Loan

Specially financial institutions provide loan on the basis of audited statements. A business organization may obtain loan considering the audited statement of last five years. So, an organization should make audit compulsory to obtain loan.

5. Audit Facilitates The Sale Of Business

Valuation of assets is made by the auditor. On the basis of valuation of assets and liabilities, businessman can sell his business. It helps to determine the price of business.

6. Audit Helps To Assess Tax

Tax authorities assess taxes on the basis of profit calculated by the auditor. In the same way sales tax authority calculates sales tax on the basis of sales shown in the audited statement.

7. Audit Facilitates To Compare

An auditor instructs an accountant in the same way which helps to compare books of accounts of current year with the accounting of the previous year. So, comparing the accounts of current with previous years helps to detect errors and frauds.

8. Audit Helps To Adjust Account Of Deceased Partner

Valuation of all the assets and liabilities of the business is made by the auditor while auditing books of account. Such valuation helps to clear the amount of deceased partner.

9. Audit Helps To Present A Proof

If any case is filed against the auditor regarding negligence, auditor can present audited report as a proof to settle such case. So, it helps to present proof to settle such cases.

10. Audit Provides Information About Profit Or Loss

A businessman wants to know profit or loss of his business after a certain period of time. So, the owner of the business can get information about profit or loss after auditing the books of accounts.

11. Audit Helps To Prepare Future Plan

All the audited statements remain true and correct. Such true and correct account helps to prepare for the future plans.

12. Audit Helps To Increase Goodwill

Auditing shows the profitability and financial position of an organization which creates faith of public over the business. Thus, auditing helps to increase goodwill of an organization.

13. Audit Helps To Amalgamate The Company

Sometimes, same nature of organization may be amalgamated. Auditing makes valuation of assets and liabilities which helps to amalgamate the company. Purchaser of the company can accept such business organization on the basis of valuation made by the auditor.

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Methods Of Detecting Errors While Auditing

Generally, auditor prepares trial balance himself. Main objective of audit is to prepare and present report on the basis of accuracy. performance and reliability. Auditor should perform following functions to detect errors:

* Check the total of trial balance.

* Comparing data of books and accounts with the amount of trial balance.

* Auditor should check the balance of books of accounts.

* Auditor should compare the balance of last year with the opening balance of current year.

* Auditor should check the primary books of account.

* Auditor should prepare list of debtors and creditors and such amount should be compared with the amount of trial balance.

* Auditor should check carefully in those areas where there are chances of frauds.

* Auditor should check carefully in those places where there are chances of specific type of errors.

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Methods Of Detecting Errors While Auditing

Generally, auditor prepares trial balance himself. Main objective of audit is to prepare and present report on the basis of accuracy. performance and reliability. Auditor should perform following functions to detect errors:

* Check the total of trial balance.

* Comparing data of books and accounts with the amount of trial balance.

* Auditor should check the balance of books of accounts.

* Auditor should compare the balance of last year with the opening balance of current year.

* Auditor should check the primary books of account.

* Auditor should prepare list of debtors and creditors and such amount should be compared with the amount of trial balance.

* Auditor should check carefully in those areas where there are chances of frauds.

* Auditor should check carefully in those places where there are chances of specific type of errors.

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ATENCIÓ! Situació de nevades

La situació s'anirà complicant al llarg d'avui dimecres. Les precipitacions s'aniran generalitzant a molts indrets d Catalunya i també a Tossa. Serà durant les hores centrals del dia quan seran més continuades i persistents. Però la novetat no està en les precipitacions, si no en com seran aquestes precipitacions ja que la cota de neu anirà baixant al llarg del dia.

Evolució de la cota de neu.

A Tossa la cota de neu anirà baixant al llarg del dia, i de forma aproximada anirà seguint aquesta evolució.
10 hores: 600 metres
12 hores: 500 metres
15 hores: 400 metres
18 hores: 200 metres
22 hores: 0-200 metres

Cal remarcar que quan la cota de neu serà més baixa serà quan les precipitacions vagin desapareixent. Malgrat això, ho anirem seguint ja que er demà dijous també podriem tenir nevades i seria a qualsevol cota, podent deixar el poble enfarinat.Any source