What is the difference between financial accounting and auditing?

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1108370

2026-03-22 17:00

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Says, Bisworanjan Nayak.

Lets start with the objective

The objective of financial accounting is to prepare accounts, trial balance, financial statements etc

The objective of auditing is to express an opinion thereon

Auditing starts where accounting ends

Auditing is the big brother of accounting

Accounting involves more numbers

Auditing involves checking these numbers

However, more math is involved in accounting

Accounting is concerned with details like transactions, account balances etc

Auditing gives usually cursory view on accounts

Accounting is a routine function

Auditing gives an opinion on this function

Accounts requires less specialized skills

Auditing requires more specilised skills

Accounting is usually less remunerative to an individual

Auding is usually more remunerative to an individual

I think this should help you to understand the job role of an accountant vis-a-vis auditor.

In conclusion, Auditing is more interesting, challenging, dynamic, remunerative than accounting in general.

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