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Accounting is basically a service function that embraces the formal design, installation, and operation of a system of accounts in order that business transactions maybe properly recorded and reported. It is usually called the language of business, and an "aid to management".
It is therefore clear that Accounting is a NECESSITY in all kinds of business specially big companies, whether a single owner or a corporation. ( non-profit or profit ) Even a family, father, mother and older children needs accounting to check their incomes and expenses.
Who needs accounting information, mainly the financial statements ( The Balance Sheet or Statement of Condition, and the Income Statement or Statement of Operation ) to safeguard their interests? We have the 1. Management, 2. Creditors, actual and prospective, 3. Investors, actual and prospective, 4. Stockholders, 5. Empoyees, unions, 6. Regulatory and taxing authorities, etc. The reasons are self explanatory.
Auditing is actually a part of Accounting. It is a specialized area that deals with the examination and review of the accounting records mainly, to find out the effectiveness of the accounting internal control systems and procedures and also, management policies and practices. In short not only finding errors and fraud, but to effectively assist management to avoid or reduce such occurrences. We have internal auditors (co. employees ) and external auditors ( generally CPA's ) with the objective of forming an independent opinion as to the fairness, and consistency of the Statements of operation and condition of the company.
Based on above informations, we can therefore conclude that Accounting, with Auditing systems is necessary in business and guides management in the effective implementation of its policies and procedures for the success of the company
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Accountancy is necessary while auditing is a luxury comment?
I think what you're saying is that accounting is necessary to keep the company's books and records straight ... but auditing is a luxury as it is just validation of the accounting (as well as some other checks around fraud, internal controls, etc.)
Why Accountancy is necessary while auditing is a luxury comment?
accountancy is necessity and it helps us to know the present position of a business.small firms is no need of auditing.on the other hand large firms have a necessity of auditing about it helps to know the real position of the business.there are some large business whose transaction are in large amount can bear the cost of auditing.above the discussion its true that auditing makes the waste of time for small business but auditing is essential to described the duties and responsibility of an auditor.
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 azmat(9852419025)
What is meant by auditing?
auditing is a review process,usually of accounting procedures
How auditing begins where accounting ends?
Auditing begins where Accountancy ends.
Accountancy is necessary while auditing is a luxury comment?
I think what you're saying is that accounting is necessary to keep the company's books and records straight ... but auditing is a luxury as it is just validation of the accounting (as well as some other checks around fraud, internal controls, etc.)
Why Accountancy is necessary while auditing is a luxury comment?
accountancy is necessity and it helps us to know the present position of a business.small firms is no need of auditing.on the other hand large firms have a necessity of auditing about it helps to know the real position of the business.there are some large business whose transaction are in large amount can bear the cost of auditing.above the discussion its true that auditing makes the waste of time for small business but auditing is essential to described the duties and responsibility of an auditor.
What is meant by auditing?
auditing is a review process,usually of accounting procedures
How auditing begins where accounting ends?
Auditing begins where Accountancy ends.
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 azmat(9852419025)
What is an accounting procedure that begins with an A?
Auditing.
List several differences btwn accounting and auditing?
simply stated; accounting is recording, whereas, auditing is verifying the recorded information
The difference between accounting policies and accounting bases?
The difference between accounting and auditing?"
Mobile phone is luxury or necessity?
the answer is that some people think it is a necessity, but it used to be a luxury in the 80's
What has the author Gary Bulmash written?
Gary Bulmash has written: 'Accounting and auditing update workshop' -- subject(s): Accounting, Auditing, Standards
What has the author J F Sherwood written?
J. F. Sherwood has written: 'Public accounting and auditing..' -- subject(s): Accounting, Problems, exercises, Auditing, Commercial law 'College accounting.' -- subject(s): Accessible book, Lending library, Accounting 'Auditing theory and procedure' -- subject(s): Auditing 'Fundamentals of accounting' -- subject(s): Accounting 'College accounting' -- subject(s): Accounting 'Income tax procedure for individuals' -- subject(s): Income tax, Law and legislation, Outlines, syllabi 'Accounting essentials for the secretary' -- subject(s): Accounting
What is the difference between financial accounting and auditing?
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.
