What is the difference between auditing and accounting and explain the difference between auditor and accountant

Auditing is a full and critical examination of the books of accounts to find out their accuracy. So auditing begins where accounting ends.

ACCOUNTANT :-
Accountant is a man who supervises and analyses the work of a book keeper and finds out the results of a final accounts.
Accounting is concerned with the preparation of the final accounts to show the results of the business at the end of the particular period.
Modern accounting has become the foundation of the whole structure of commerce. It serves as eyes and ears to management.

AUDITOR :-
He is a person who critically examines the record of accounts books, vouchers, balance sheet and profit and loss accounts. He satisfies about the accuracy of accounts. If the balance sheet does not represent the true picture of the business, auditor reports to the share holders. Sometimes he also advises to the company.


DIFFERENCE BETWEEN AUDITING AND ACCOUNTING or DIFFERENCE BETWEEN ACCOUNTANT AND AUDITOR :-
We may find the following differences in them :

1. Meaning :-
Accounts : Accounting means the maintaining of the books of accounts.
Audit : Auditing means examining the books of accounts and reporting means to report about their accuracy.

2. Performance Of Work :-
Accounts : Accountant job is performed by the accountant.
Audit : Auditing job is performed by the auditor.

3. Appointment :-
Accounts : Accountant is appointed by the management.
Audit : Auditor is appointed by the share holders.

4. Nature Of Job :-
Accounts : Accountant job is a mechanical nature.
Audit : Auditor job is is not so mechanical in that sense.

5. Qualification :-
Accounts : For the accountant no specific qualification is required.
Audit : For the auditor specific qualification is required.

6. Responsibility :-
Accounts : Accountant responsibility is fixed by the management.
Audit : Auditor responsibility is fixed by law.

7. Submission Of Report :-
Accounts : Accountant is not required to submit any report.
Audit : Auditor is required by law to submit the report.

8. Fixation Of Rights :-
Accounts : Rights and duties of accountant are fixed by the management.
Audit : Rights and duties of an auditor are fixed by the law.

9. Time :-
Accounts : In case of accounting, period is usually one year.
Audit : The period of auditing is usually less than one year.

10. Purpose :-
Accounts : Accounting purpose is to show the financial position of the business.
Audit : Auditing verifies the true picture of the financial statement.

11. Record / Data :-
Accounts : Accounting is related with the present record.
Audit : Auditing is related with the past record.

12. Employment :-
Accounts : Accountant is a permanent employee.
Audit : Auditor is not a permanent employee.

13. Reward :-
Accounts : Accountant reward is called salary.
Audit : Auditor reward is called free.

14. Liability :-
Accounts : After preparing the final accounts accountant has no liability.
Audit : Auditor has liability after presenting the audit report.

15. Importance :-
Accounts : Accounting is necessary for every business.
Audit : Auditing is not necessary for every business.

16. Rules :-
Accounts : Accounting is not governed by code of conduct laid down by the institute.
Audit : Auditing is governed by the charted accountant code of conduct.

17. Evaluation :-
Accounts : The accountant can not determine the efficiency of its own function.
Audit : Auditor also cannot determine the efficiency of its own function but he can determine the efficiency of all the business.

18. Methods :-
Accounts : Accounts uses the method of valuation and depreciation.
Audit : The auditor uses manual and computerized method.

19. Knowledge :-
Accounts : Accountant must have the knowledge of accountancy.
Audit : Auditor must have the knowledge of accounting as well as auditing.

20. Removal :-
Accounts : Accountant can be removed from his job at any time.
Audit : Auditor can not be removed till the completes his period of appointment.

21. End And Start :-
Auditing begins where accounting ends.