Is accounting is a necessity while auditing is a luxury for a business enterprise?

accountancy is necessity.

it may be treated as a necessity because of the following reason.

it helps us to know if the firm is suffering from loss or profit, any small firm can get take the help of a person having knowledge of accountancy and does not have to pay large amount

it helps us to know the real position of the business

auditing as luxury

whereas to get our accounts audited we have to pay good amount of money to auditor . only those firm whose transaction are in large amount can bear the cost of auditing

it is also a waste of time for small business because it involves at alot of time more over employees efficiency are decreased because even for small things they are called and questioned about those things

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