Did you know that both accounting and auditing deal with finances but are two distinct disciplines? The rate of employment of auditors and accountants is expected to increase by 13% by 2022, based on Bureau of Labor Statistics. If you are interested in pursuing these careers, it is paramount that you understand their differences. This article provides an in-depth explanation of the differences between accounting and auditing.
What is Accounting and Auditing?
Accounting is a daily process performed by businesses, companies, and organizations to manage their finances. It involves tracking departmental budgets, recording, analyzing and reporting financial information and running payrolls. Accurate accounting is crucial for determining profits and cash flow for growth or stability achievement.
Auditing is the process of evaluating organization's or businesses' financial practices ranging from accounting procedures, documentation to regulatory compliance. Auditing can be conducted by an internal auditor or an external one. An internal auditor is an employee charged with the responsibility to evaluate the organization's practices while an external one is hired outside of the firm.
Accounting and Auditing Explained
Although accounting and auditing are different disciplines, they are related and connected in many ways. Therefore, students taking them often share some courses. Nevertheless, while auditing is a stand-alone major in most institutions, advanced accounting degrees offers the option of majoring in auditing.
In most cases, a degree program in accounting focuses on primary businesses skills to pave the way for career opportunities. Some of the coursework include communications, arts social sciences and mathematics. The coursework imparts learners with both analytical and critical thinking skills.
Technical accounting knowledge is taught in specialized classes emphasizing on accounting principles, auditing, and federal income tax as well as cost and budget control. For those interested in advance accounting, nonprofit accounting, internal accounting, and business law are some of the coursework.
What are Some of the Careers in Accounting?
Public accountants prepare tax returns, determine organization's financial state, analyze financial data and provided recommendations. To become a certified public accountant, one must pass a national examination.
Finance managers are in charge of guiding an organization's financial health. They not only provide financial reports and investment activities but also come up with growth strategies. In a nutshell, they solve financial problems and find expansion opportunities.
- Tax Examiner
Tax examiners are responsible for reviewing both corporate and individual tax returns. They are involved in processing tax returns, conducting tax audits and investigating overdue accounts.
What are Some of the Careers in Auditing?
- Financial Examiners
Financial examiners monitor financial institutions to ensure they follow legal procedures. By reviewing financial and loan documentation, they create processes that are compliant with the law.
Internal auditors evaluate how funds are utilized and managed in an organization. After reviewing financial documents, they provide recommendations on how to minimize wastage, maximize profits and evade fraud.
- IT Auditor
IT auditors are responsible for reviewing an organization's financial data management systems to ensure the data is accurate, safe and reliable.
Ready to Start a Career in Accounting or Auditing?
It is indisputable that accounting and auditing are not only versatile careers, but also in demand. Armed with such skills, you'll be ready for various challenging opportunities. Enroll in a degree program to get started!
Check out our listing of the: Most Affordable Online Bachelor's in Accounting Programs