close
test_template

Comparative Analysis of Accounting and Auditing

download print

About this sample

About this sample

close

Words: 480 |

Page: 1|

3 min read

Published: Mar 14, 2019

Words: 480|Page: 1|3 min read

Published: Mar 14, 2019

Table of contents

  1. Types of accountability
  2. Political
    Social
    Environmental
    Auditing
  3. Difference Between Acountability and Auditing
  4. Meaning
    Purpose
    Starts
    Period

Accounting is a specialized language of business which helps to understand economic activities. It is an act of orderly, keeping the records of the daily monetary transactions of the business, the transactions are then classified into various groups followed by summarizing in a way that can be referred at an urgent time and thereafter analyzing and understanding the results of the financial statement and the results must be communicated to the interested parties.

'Why Violent Video Games Shouldn't Be Banned'?

Accounting is governed by Accounting Standards. The main function of accounting is to provide material information related to decision making. Cost accounting, management accounting, financial accounting, are the branch of Accounting.

The objectives of accounting are as follows:

  1. Proper record of transactions through Journal, Books, Ledger and Trial Balance.
  2. Disclose the profitability position from the records through Income Statement.
  3. Presenting the financial position through Statement of Financial Position.
  4. Provide necessary information about solvency and liquidity position to interested parties.

Types of accountability

Political

It is the accountability of the government and politicians to the public bodies such as parliament. It refers to the commitment of government officials to act at the best interest of the society.

Social

D. Crowther defines social accountability as a viewpoint to reporting a firm’s activities which give an identification of socially relevant behavior. It is mostly used for corporate social responsibility (CSR) and is used in organization such as NGO.

Environmental

It is a scope that identifies resource use, measures and communicates costs of a company which may impact on the environment. Costs include are penalties and taxes, waste management costs, costs of clean up. It measures the effects of natural environment of a company in monetary terms.

Auditing

It is a logical task which examine the financial information independently to give an opinion on the True and Fair view. Here organization refers to all the units regardless of the size, structure, nature and form.

Auditing is governed by Standard on Auditing. Auditing is a paramount inspection of each transaction that is the receipts, account books and documents are verified in order to show accuracy of the financial statement. Moreover, errors and frauds, manipulation in records or misappropriation can be detected through detailed analysis.

Difference Between Acountability and Auditing

Meaning

Accounting means consistently keeping the records of the accounts of an organization and preparation of financial statements at the end of financial year.

Auditing means review of the books of account and financial statements of an organization.

Governed by

Accounting Standards

Standard on Auditing

Work performed by

Accountant

Auditor

Purpose

To show the performance, profitability and financial position of an organization.

To reveal the fact that to which extent financial statement of an organization gives true and fair view.

Starts

Accounting starts where bookkeeping ends.

Auditing starts where accounting ends.

Period

Accounting is an endless process.

Get a custom paper now from our expert writers.

Auditing is a periodic process.

Image of Prof. Linda Burke
This essay was reviewed by
Prof. Linda Burke

Cite this Essay

Comparative Analysis of Accounting and Auditing. (2019, March 12). GradesFixer. Retrieved June 20, 2024, from https://gradesfixer.com/free-essay-examples/comparative-analysis-of-accounting-and-auditing/
“Comparative Analysis of Accounting and Auditing.” GradesFixer, 12 Mar. 2019, gradesfixer.com/free-essay-examples/comparative-analysis-of-accounting-and-auditing/
Comparative Analysis of Accounting and Auditing. [online]. Available at: <https://gradesfixer.com/free-essay-examples/comparative-analysis-of-accounting-and-auditing/> [Accessed 20 Jun. 2024].
Comparative Analysis of Accounting and Auditing [Internet]. GradesFixer. 2019 Mar 12 [cited 2024 Jun 20]. Available from: https://gradesfixer.com/free-essay-examples/comparative-analysis-of-accounting-and-auditing/
copy
Keep in mind: This sample was shared by another student.
  • 450+ experts on 30 subjects ready to help
  • Custom essay delivered in as few as 3 hours
Write my essay

Still can’t find what you need?

Browse our vast selection of original essay samples, each expertly formatted and styled

close

Where do you want us to send this sample?

    By clicking “Continue”, you agree to our terms of service and privacy policy.

    close

    Be careful. This essay is not unique

    This essay was donated by a student and is likely to have been used and submitted before

    Download this Sample

    Free samples may contain mistakes and not unique parts

    close

    Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

    close

    Thanks!

    Please check your inbox.

    We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!

    clock-banner-side

    Get Your
    Personalized Essay in 3 Hours or Less!

    exit-popup-close
    We can help you get a better grade and deliver your task on time!
    • Instructions Followed To The Letter
    • Deadlines Met At Every Stage
    • Unique And Plagiarism Free
    Order your paper now