There are a number of similarities and differences in both the accounting and auditing in UAE. A lot of people use both of these terms quite interchangeably but still, the difference exists. In both processes, there are separate processes that are involved. Both these terms require different processes for monitoring the financial data of the companies. Because of these processes, companies may build trust in the public.
Accounting comes under the category of handling the financial transactions of the companies on a daily basis. A huge number of functions are involved in accounting ranging from that of the earnings than to the outgoing payments. In some accounting functions, the bills or payments are also included. Also, all sort of received payments is also considered while forming the financial statement of the company and accounting function. In addition to that, tax deductions, payroll processing, and company book reconciliation also come under the category of accounting or accounting services.
Reviewing the accounting books comes under the term auditing, forensic accounting or the company itself may carry out the process of audit. Official third parties carry out the audits if the company is traded on stock exchange. As a whole, the audit process basically covers the in-depth examination of the company’s financial systems. It is usually carried out once or twice in a year. Because of the auditing process, the whole financial system of the company gets certified by third-party officials.
There are a number of differences that exist between both accounting and auditing, one of the most important difference exists in the checking of the process.
In auditing, the whole accounting functions of the company are verified and validated.
Accounting is carried out on a daily basis whereas audit is carried out on a yearly or quarterly basis
Accounting is compiled by the company employees but the audit s conducted by independent bodies having no relation with the company.
Key Differences Between Accounting and Auditing
There are some points will explain the difference between accounting and auditing:
- Accounting is an art of arranging, keeping the accounts of the financial transactions and preparation of the financial statements of the company. Auditing is an analytical task which involves the independent evaluation of the financial data to express an opinion on true and reasonable view.
- Accounting is ruled by Accounting Standards, whereas Standards on Auditing governs Auditing.
- Accounting is a basic and simplified task, which is done by the Accountants in a company or firm but Auditing is a complex job, so Auditors are compulsory for execution or performing it.
- The main purpose of accounting is to reveal the profitability situation, financial situation and performance of the company or an organization. On the other hand, auditing is to check the accuracy of the financial statement of the company or an organization.
- Accounting is a nonstop action or continuous activity. On the other hand, Auditing, which is a periodic activity.
- End of Accounting is the starting or beginning of Auditing.
With differences, there are some similarities between auditing and accounting, bookkeeping which is why they both terms are used interchangeably.
In both, the functions, thorough knowledge of the systems are required. The knowledge of the accounting procedures is really important for both the functions for proper processing. A person should preferably have an accounting degree for carrying out both accounting and auditing. If not, he or she wouldn’t be able to check or validate the systems properly
Both the processes are conducted for checking the accuracy of the company and its financial procedures.
There are a number of top auditing firms in Dubai and accounting firms in Dubai, UAE who seem to be interested in hiring the best accountants as well as the auditors in Dubai, UAE for proper auditing and accounting services. Audit firms in Dubai, UAE serve the best services for companies making the companies better than before. The experts working for this firm points out all the important facts that may help the company in becoming better in the future.
You can contact them and get their services quite easily. Also, you can get business related advice from their professionals as well. So, contact them and make your business a success.