Differences between Auditing and Investigation
Auditing: Auditing is concerned with examining the accounts and reporting on financial statements.
Investigation: Investigation is the examination of accounts of a business for special purpose.
Auditing: The objective of Auditing is to express an opinion on the financial statements of the concern.
Investigation: Investigation is done for some specific purpose.
Auditing: It is compulsory in case of Joint stock companies.
Investigation: It is not compulsory
Auditing: Auditing is done at the end of the financial year.
Investigation: Investigation can be done over a period of years.
Auditing: Audit is conducted on behalf of the owners of the company
Investigation: Investigation is conducted on behalf of outsiders and owners at some times.
Auditing: It is has a narrow scope
Investigation: It has a wide scope
Auditing: An auditor is appointed by the shareholders or directors or by Government.
Investigation: An investigator is appointed by the outsider.
Auditing: Auditor has to give a report about the true and fair view of the final accounts.
Investigation: The Investigator gives a report on the basis of conclusion and enquiries. Expression of the opinion is not necessary.
Auditing: Only Chartered Accountants are qualified to conduct audit.
Investigation: An investigation need not be conducted by a Chartered Accountant.
Auditing: Investigated accounts are not audited in ordinary course.
Investigation: Generally audited books of accounts are taken up for investigation.