Difference between auditing and investigation

Answer 1

The purpose of investigation varies from business to business. The purpose of audit is to determine the true and fair view. The investigation relates to critical checking of particular records. The audit relates to checking of all books and record.

The investigation may be conducted on behalf of owners and outsiders like investors. Audit is conducted on behalf of owners only. The appointment is made by them. Investigation work can be completed through cent percent checking. Audit work may be completed through test checking. The investigation has no time limit. It may relate to many years. The audit of accounts is made for a particular time period. The investigator may or may not be a charted accountant. The auditor is usually a chartered accountant. The investigator is voluntary. It may become compulsory in certain cases. The auditor work is compulsory under law for companies and other concern.

The investigation may examine employees personally. The auditor does not examine employees personally. The investigation is usually conducted after the audit of accounts. The audit is usually conducted before the investigation of accounts. There is no legal requirement to disclose information in investigation. The auditor requires the full disclosure of information under the law.

Audit is the examination of the financial statements and internal controls of an entity to determine the Validity and fairness while investigation is the enquiry into any matter brought to the accountant's knowledge by the management

Audit is the detail checking of accounts for the satisfaction of client of the audit orand an examination of books of accounts,vouchers,and books of business as will enable auditor to satsfied that the balance sheet is proprely drawn up

The qualifications of an auditor are specific and stated by a respective countries accounting standards. While, a regular old accountant can perform an investigation.

Audit is a process to check whether the account are properly maintained as per required norms following all the procedures etc. And to point out any lapses in this line.

Whereas Investigation is done when a lapse already exists to pin point the reason and person involved in it so that responsibility for such lapse could be fixed.

Audits are objective and systematic assessments of how well offices are carrying out programs and operations, and focus on process.Audit reports containing findings and recommendations are issued to appropriate officials. Audit reports are public documents available upon request.

Investigations are usually undertaken in response to reports of misconduct, and focus upon a person.

Investigation reports may be prepared to refer matters for prosecution, inform the agency of a basis for potential discipline, correct serious deficiencies, or inform other government agencies of the need for action within their jurisdiction. Access to investigative reports is limited in accordance with the provisions of the Privacy Act.

Audit is a process to check whether the account are properly maintained as per required norms following all the procedures etc. and to point out any lapses in this line.

whereas

Investigation is done when a lapse already exists to pin point the reason and person involved in it so that responsibility for such lapse could be fixed/

an audit is when they are actually doing the auditing and an investigation is when they are investigating.

or you could say the differences are:

an audit is an official examination and verification of accounts and records, esp. of financial accounts.

investigating is when you search out and examine the particulars of in an attempt to learn the facts about something hidden, unique, or complex,

Audit is also when you have a checklist and you go around checking if the requirements are met or not. You know what to look for.