Latitude of the position

Classified in Economy

Written at on English with a size of 3.54 KB.

 

Basis

Investigation

Auditing

1.Interested Parties

 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 Comings.

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

5.Concern

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 Audit.

7.Duplication

Investigation may be conducted Even the accounts are audited.

Audited accounts are not audited Again

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 Applied

9.Time Duration

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

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