What is the difference between auditing and accounting?

[Good-Person]

Auditing and accounting are the two most common terms that are used by many people when we usually discuss things about financial accounting. However, do you think that both of these terms are actually quite different?

 

[Nomad]

Accounting means you keep a record of your income and expenses, in other words, you maintain your sales and expenditures. Auditing, on the other hand, means analyzing your income and expenses for the purpose of taxation.

 

[Ektalakra]

Auditing and accounting are distinct yet interconnected. Accounting involves recording, summarizing, and reporting financial transactions, while auditing is an independent examination of financial information to ensure accuracy and compliance, providing assurance to stakeholders.

 

[Marcellomelan]

It's a common misconception to use "auditing" and "accounting" interchangeably, but they're distinct roles. Think of it this way: accounting is like baking a cake, keeping track of ingredients and recipes, while auditing is double-checking to ensure everything's done correctly.

I actually had a chat with a Croydon based charted accountant last year at a local event. She compared it to gardening: accounting is planting and nurturing the plants, while auditing is making sure they're healthy and thriving.