Difference Between Auditor and Accountant

Accounting is the process of recording the financial transactions of a business in a manner suitable for preparing the financial statements of the business which provide an accurate view of the business activities of the company.

On the other hand, auditing is the reviewing of financial statements or books to ensure they are reliable.

While accountants in UAE deal with recording all the transactions of the business, auditors in UAE deal with reviewing the financial statements of the company to ensure the information provided is genuine and reliable.

In this blog, we’re going to take a look at the differences between auditing and accounting.

Definition of Auditing and Accounting

The first significant difference between auditing and accounting is the definition of the process, as mentioned previously. Auditing, as a process, is more concerned with the evaluation of transactions and financial statements of the business while accounting is concerned with ensuring that the transactions are correctly recorded.

While both of them deal with financial statements, auditors in UAE and other countries are responsible for checking the financial statements while accountants are responsible for creating those statements properly.

Differences in Regulations

Auditors in UAE and accountants in the UAE have to comply with various regulations set by different bodies. While accountants have to comply with the accounting standards set up by international accounting bodies, auditors have to comply with standards of auditing that are set by international auditing boards.

Both of the professions require strict adherence to the standards as they are crucial in creating reliable, unbiased, and standardised financial information.

Differences in Deliverables 

The key deliverables are different when it comes to accountants and auditors in UAE. While the key deliverable for accounting is the financial statements of the company vis-a-vis the statement of profit and loss, the balance sheet, and the cash flow statement.

The key deliverable for auditors is the audit report which is the report produced by the auditors at the end of an audit and contains information about the entire audit. The audit report can have different results. For example, a qualified audit report is produced if the auditor found some discrepancies in the financial statements. An unqualified report is issued when the auditor finds that the financial statements provide an accurate and fair view of the company’s financial situation.

Differences in the Process

While accounting is an on-going activity for businesses, auditing is a periodic activity. Since accounting deals with ensuring the business is recording every transaction correctly, it is a day-to-day process. The financial statements are then created from the accounting books on an annual basis or a quarterly basis.

Auditing is a period activity as it is meant to be a periodic review of how accurate the accounting of the company is. An annual audit of the financial statement is a statutory requirement for most countries and, unsurprisingly, one of the most common forms of an audit conducted around the world.

Conclusion

While both auditing and accounting deal with the financial statements of the company, both are entirely different processes and are considered to be distinctively different. We hope this blog helped clarify some of the differences between auditing and accounting!