What are the differences between Financial Accounting and Auditing?

Question

Please outline the main differences of their job roles in as much detail.

Also which one is more maths orientated?

Thanks.

Answer 1

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.

Answer 2

Financial Accounting is concerned with the preparation and presentation of transactions and entries which form the financial position of the entity into a format which complies with Accounting Standards and legislation.

Auditing is the checking and verification of the statements to ensure they demonstrate a true and fair view of the entity's position.

Neither job is really maths oriented. Accountancy only requires basic mathematical ability.  

Answer 3

accounting deals with the present, the here and now (every month, etc)

auditing deals with the past (last year, 2 years ago, etc)

Answer 4

Financial accounting is accounting and audit is audit. In financial auditing you check some one elses finacial accounts and in finacial accounting you prepare the account that will be audited.