Summary Report of the Financial Performance throughout the Period

Summary Report of the Financial Performance throughout the Period

At he end Of the period, accountant would produce Financial Statement, a summary report of the financial performance throughout the period. Whereas, auditor conduct a check on the accuracy of the financial statements, to ensure that there is no material misstatement of the financial statement prepared. Scope: CLC Accounting is related with preparing financial statements. D Auditing is concerned with checking financial statements. Data: C] Accounting is related with current data. 0 Auditing is concerned with past data. Purpose: C] The purpose of accounting is to show performance and financial position of a business.

C] The purpose of auditing is to certify true and fair view of financial statements. Nature: It is constructive in nature. It is analytical in nature. Time: C] The time period of accounting is usually twelve months (one year). It takes twelve months (one year) to complete records. The time period of auditing is less than one year. It may be completed within one month or may be more than one month. Start: When the work Of bookkeeper ends then the accountant work Starts. When the work of accountants ends Then the auditor work starts. Principle: C] The accounting principles include accrual, going concern, prudence and insistence.

Al not the necessity of every business. Cycle: Auditing is CLC Accounting cycle starts with journalizing and ends with final accounts. C] Auditing cycle starts with understanding clients system and ends with an opinion. History: History or Background of business and accounting go side by side. History or Background of auditing is short as compared to accounting. Report: C] Accounting work involves no report to any party. I:] Auditing work requires separate report to owners. Auditing is a full and critical examination f the books of accounts to find out their accuracy.

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