Accounting is a method of maintaining financial records pertaining to the business. The process involves summarizing, analyzing, and reporting these transactions to Agencies, Regulators, and Tax collection entities. The financial statements utilized in accounting are a concise summary of monetary transactions over an accounting period, summarizing a company's operations, financial position, and cash flows.
Auditing is defined as the on-site verification activity, like inspection or examination, of a process or quality system, to make sure compliance to requirements. An audit can apply to a whole organization or could be specific to a function, process, or production step. Some audits have special administrative purposes, like auditing documents, risk, or performance, or following abreast of completed corrective actions.
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