Similarities Between Accounting And Auditing

Both Accounting and Auditing work under proper maintaining and checking of Books of Accounts.

Accounting and auditing procedures, standards, rules and principles are prepared in order to provide professional skills to various organizations (profit making institutions or non profit organizations).

Both accounting and auditing interact with each other for proper maintaining and checking of books of accounts for the successful running of business by avoiding mistakes, errors and frauds.

Both use computer software to work efficiently and effectively without losing much time in preparing and checking of books of accounts with true, reliable and accurate information useful for Users of Financial Statements.

Both have great importance in the field of business as without proper keeping and checking of books of accounts, the business resources may not be utilized efficiently and effectively to meet business’s financial performance and financial position. For example, if proper keeping and checking of books of accounts are not adopted by a business, then due to wrong or incorrect figures of sales made for the accounting period or due to the failure to detect or prevent fraud or theft of godown items , the business will surely suffers a loss in near future.