Difference Between Accounting and Audit
Difference Between Accounting and Audit
Audit : Auditing means examining the books of accounts and reporting means to report about their accuracy. 2. Performance Of Work :Accounts : Accountant job is performed by the accountant. Audit : Auditing job is performed by the auditor. 3. Appointment :Accounts : Accountant is appointed by the management. Audit : Auditor is appointed by the share holders. 4. Nature Of Job :Accounts : Accountant job is a mechanical nature. Audit : Auditor job is is not so mechanical in that sense. 5. Qualification :Accounts : For the accountant no specific qualification is required. Audit : For the auditor specific qualification is required. 2. Govt Accounting System
Governmental accounting is an umbrella term which refers to the various accounting systems used by various public sector entities and Government offices. The Government Accounting System is governed by Government Accounting Rules.1990. The accounts of
Government are kept in three parts: 1. Consolidated Funds of India 2. Contingency Funds of India 3. Public Account
2. Expenses are reported on the income statement when the cash is paid out. Under the accrual basis of accounting 1. Revenues are reported on the income statement when they are earnedwhich often occurs before the cash is received from the customers. 2. Expenses are reported on the income statement in the period when they occur or when they expirewhich is often in a period different from when the payment is made.
Capital Expenditures 1 Its effect is long term i.e., it is not exhausted within the current account year. Its benefit is enjoyed in future year or years also. In a word, its effect is reduces gradually. An asset is acquired or the value of an asset is increased as a result result of this expenditure. It does not occur again and again - it is non-recurring and irregular. Generally, it has physical existence i.e., it can be seen with eyes. 1
Revenue Expenditures Its effect is temporary, i.e., it is exhausted within the currentaccounting year.
Neither an asset is acquired nor the value of an asset is increased. It occurs repeatedly - It is recurring and regular. It has no physical existence, i.e., it cannot be seen with eyes.
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6. Trial Balance
A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns. A company prepares a trial balance periodically, usually at the end of every reporting period. The general purpose of producing a trial balance is to ensure the entries in a company's bookkeeping system are mathematically correct.
operating results and the accompanying changes in the balance sheet. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills.
8. Balance Sheet
A financial statement that summarizes a company's assets, liabilities and shareholders' equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders. The balance sheet must follow the following formula: Assets = Liabilities + Shareholders' Equity
9. Accounting Standard
Indian Accounting Standards, (abbreviated as india AS) are a set of accounting standards notified by the Ministry of Corporate Affairs which are converged with International Financial Reporting Standards (IFRS). These accounting standards are formulated by Accounting Standards Board of Institute of Chartered Accountants of India. Now India will have two sets of accounting standards viz. existing accounting standards under Companies (Accounting Standard) Rules, 2006 and IFRS converged Indian Accounting Standards(Ind AS).
Person responsible for paying any sum for carrying any work to any resident contractor should deduct tax at source.
Tax should be deducted at source only if the contract is between the contractor and the following specified persons: 1. The Central Government or any State Government. 2. Any local authority. 3. Any corporation established by or under a Central, State or Provincial Act 4. A company 5. Any Co-operative Society. 6. Any authority, constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both. 7. Any Society registered under the Societies Registration Act, 1960 or any law corresponding to that Act in any part of India. 8. Any Trust. 9. Any University established by or under any Central, State or Provincial Act or any institution declared to be a University under the University Grants Commission Act. 10. Any firm. 11. Any individual or Hindu Undivided Family whose books are required to be audited under section 44AB during the immediately preceding financial year. [The turnover from business/profession exceeds the limits specified u/s 44AB during the immediately preceding financial year]. 12. Association of persons or Body of Individuals, whether incorporated or not, whose books are required to be audited under section 44AB during the immediately preceding financial year.