Following are the differences between book keeping, accountancy and auditing:-

  1. Book keeping as an art of recording the business transactions in the books of original entry and the ledgers. Accountancy means compilation of accounts in such a way that one is in position to know the state of affairs of the business. The auditing means the verification of vouchers to find out their accuracy and give true and fair view in respect of final accounts.
  2. The primary work is done by the book keeper and accountant while finishing touch is given by the auditors.
  3. Where the work of an accountant ends, the work of auditor begins.
  4. A book keeper and an accountant has to record the transaction in the books of accounts while an auditor has to check and verify such transactions and accounts and send a report to the persons who appointed him.
  5. The book keeper or the accountants are the employee of the business firm while the auditor is an independent identity.
  6. The accountant can give the information to the management as per the records maintained by them. Normally, he does not give and suggestion or advice to management while the auditor can give suggestions or advice on the basis of their finding from the accounts records.
  7. Auditor should be a qualified accountant i.e. chartered accountant but in case of accountant it is not compulsory. He/she may or may not be a chartered accountant.


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