Difference Between Auditing And Investigation – Hello friends, today we are going to share Difference Between Investigation and Auditing.
Difference Between Auditing And Investigation
|1||Object||The object of auditing is to establislh the completeness, correctness and truthfulness of the accounts of an organisation||The aim of investigation is detection of frauds or defalcations, or in-depth examination for some specific purpose.|
|2||Terms||Auditing involves the examination of books of accounts of the business for a year.||Investigation involves the examination of books of accounts for a number of years.|
|3||On Whose Behalf||Audit is usually conducted on behalf of the owner of the business.||Investigation is usually on behalf of external persons, though sometimes it may be ordered by the owner also.|
|4||Necessity||Many institutions such as, insurance companies, banking companies public and private companies are required by law to get their accounts audited.||Investigation is not legally compulsory in any circumstances. It is totally optional whether or not to get an investigation conducted.|
|5||Scope||The scope of auditing is limited as it only involves examination of books of accounts.||Investigation is wider in scope as, apart from books of accounts, other acts can also be examined.|
|6||Qualification||An auditor has to be a chartered accountant.||A qualified and experienced accountant may also be an investigator.|
|7||Frequency||An audit is usually conducted on a yearly basis.||Investigation is conducted only in certain specific situations.|
|8||Type Of Checking||Test checking may be used in an audit.||In an investigation the checking has to be complete and in-depth.|
|9||Report||In an audit the report has to be as per the specifications of the relevant Act.||In an investigation the report depends upon the nature of the investigation.|
|10||Criticism||In the report only those points are mentioned with which the auditor does not agree. In other words, auditing is not critical.||In an investigation the work is conducted with the aim of achieving a specific result and it is done from a critical point of view.|
|11||Documents||In auditing work is done on the basis of documents, vouchers and correspondence.||In an investigation, apart from vouchers, and documents, other facts are also examined.|
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