Differences Between Accountancy and
It is the process of recording, classifying, summarising and interpreting all
the financial transactions.
It is the process of examining books of accounts and reporting on the financial
Its main objective is to find out profit earned or loss suffered by a company
and to show the financial position of the company for a particular period.
Its main objective is to examine the correctness of the accounts and financial
statements and certify that whether the company exhibits a true and fair view
of state of affairs of the concern.
Nature of Employment
An accountant is a permanent employee of the organisation.
An auditor is an independent person and is not an employee of the organisation.
An accountant does not require any formal qualification.
An auditor should be a qualified chartered accountant certified by the
Institute of Chartered Accountants of India.
Accountant is not required to submit the report on the financial statements
prepared by him.
Auditor should submit the report certifying the truth and fairness of the financial
An accountant is remunerated in the form of salary.
An auditor is remunerated in the form of professional fees.
Commencement of work
Accountancy starts where Book-keeping ends.
Auditing starts where Accountancy ends.