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.