The difference between audit and accounting

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An audit of financial statements is understood as an independent audit of financial statements by an auditing organization or an individual auditor, the purpose of which is to express an opinion on its reliability in all material aspects for a certain period.

Accounting is an orderly system for collecting, registering and summarizing information in monetary terms about the state of property, liabilities and capital of the organization, and their changes through continuous, continuous and documentary reflection of all business transactions. Accounting is closely related to tax and management accounting.

The purpose of the audit is to obtain a clearly expressed opinion of an independent professional on the reliability of the company’s financial statements and on the compliance of its accounting with the legislative norms of the Russian Federation. The information received will allow the head to form the correct opinion about the results of the organization’s work and make a decision on further ways of its development.

The main purpose of accounting is to provide all interested users of this information with the necessary financial information, which contributes to the solution of a number of complex and important tasks of effective enterprise management.

What is the difference between accounting and audit of financial statements? Audit is the verification of accounting by an independent qualified employee, from the outside, while accounting is the internal accounting in accordance with legal acts and the specifics of conducting business activities of the company.

Often, the manager maintains accounting on an ongoing basis, and conducts an audit at the end of the reporting year to verify the accounting. That is why it is convenient to keep both accounting and audit records together – in this case, full control is provided, and the manager receives reliable information.

Not all companies conduct an audit, but only those that make a profit within certain amounts. Audit criteria in 2021: by revenue – from 400 to 800 million rubles; by the size of the balance sheet assets – from 60 to 400 million rubles. If the company falls within the limits, then the audit will be mandatory. Therefore, it is convenient for the manager to have totals based on the results of both audit and accounting.

The “Valen Group” company provides accounting services and also conducts a proactive audit of financial statements. Provides a full range of necessary services for a correct understanding of the results of the company’s activities.