Many people do not know that although auditing and accounting both deal with finances, they are two different distinct disciplines. Recent statistics show that by 2022, employment in these fields is expected to increase by 13%. Therefore, if you are considering a career in accounting or auditing, it is very important that you understand the differences between them. Continue reading below to discover the differences between accounting v auditing.
Accounting v Auditing
Firstly, for businesses to manage their finances, accounting is carried out on a daily basis. The process involves tracking a number of financial element such as budgets and payroll. If you run a business and you are managing your finances rather than hiring an accountant, you must ensure that you are confident enough to do the work accurately. If mistakes are made, it will be very difficult to determine profits and cash flows for growth and stability.
Auditing involves evaluating a company’s financial practices. This can range from accounting procedures to regulatory compliance. Auditing can be conducted by either an internal or external auditor. An internal auditor is an employee charged with the responsibility to evaluate the organization’s practices while an external one is hired outside of the firm.
Accounting & Auditing Explained
Although accounting and auditing are different disciplines, they are related and connected in many ways. Therefore, students taking them often share some courses. Nevertheless, while auditing is a stand-alone major in most institutions, advanced accounting degrees offers the option of majoring in auditing.
In most cases, a degree program in accounting focuses on primary businesses skills to pave the way for career opportunities. Some of the coursework include communications, arts social sciences and mathematics. The coursework imparts learners with both analytical and critical thinking skills.
Technical accounting knowledge is taught in specialized classes emphasizing on accounting principles, auditing, and federal income tax as well as cost and budget control. For those interested in advance accounting, nonprofit accounting, internal accounting, and business law are some of the coursework.
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