Investigation is carried out on behalf of
The outsiders who want to know the financial position of the business
audit is conducted on behalf of
The share holders
2. Nature Of Work
Investigation is not compulsory
Audit is compulsory in case of
Joint stock company
3. Nature Of Report
Investigation report is positive
Audit reports have certain short
4.Submission Of Report
The report of the investigation
Is submitted to the party appointed him for investigation
The report of audit is submitted
To the share holders
With Financial Policy
Investigation has no concern
With the financial policy of the company whether it is followed or not.
Auditor has to state the facts
About it whether it was followed or not.
6. Net Profit Calculation
Actual earning capacity r the
Net profit of the business is calculated in case of investigation.
While it is not so in case of
Investigation may be conducted
Even the accounts are audited.
Audited accounts are not audited
8. Checking Method
Investigation is a thorough
Checking of the books of account for a particular or number of years.
In case of audit test checks are
Investigation may cover a period
Extending over three to seven years
The audit of accounts usually
Covers the period of one year.
10. Nature Of Object
Investigation is conducted for a
Particular purpose or object
The object of auditing is to
Find out the correctness of statements and exhibit a true and fair view
About the affairs of the business