Auditing and accounting have differences that can be confusing and vague if you overlap the ideas and can’t separate them appropriately. But though the jobs may be similar, there are many different responsibilities for each job. This article explains some of those differences, as well as their similarities.
What Does An Accountant Do?
An accountant practices analyzing, measuring and communicating financial information to his clients, whether they be a business or an individual party. The accountant is responsible for translating correct and reliable information about the economic state of the clients finances in a clear and comprehensible way. The accounting report, the presentation of the information found by the accountant, is made up of balance sheets, income statements, cash flow statements and shareholder’s equity statements. Simple configurations such as debts to suppliers or pending earnings due to the client are also discussed and analyzed. Other responsibilities for an accountant include (but are not limited to) understanding and rearranging internal resources belonging to the client to establish their financial security, inspecting profitability of the client’s financial moves, comprehending the outflows and inflows of the client, and authenticating the economic state of the client to make sure they follow government regulations.
What Does An Auditor Do?
The most common kind of auditor is indeed financing, but there are also auditors who appraise the activities of operational, ecological and technical situations. An auditor is an expert in his field and his job is to independently calculate a specific event or activity. A financial auditor focuses on examining economic statements and elemental records to determine if the financial statements are equitably presented or not. The most common situation for an auditor is to have a company request a financial audit for the advantage of either internal or external users of financial data. They spend their time analyzing and contrasting various financial reports and proof documents, and they also confirm the compliance of any company’s accounting to the standard regulations given by the government, such as IFRS. Thus, the central goal of the financial auditor is to extensively evaluate the reports and records of a company’s finances and then present their client with proposals for improvement determined by that evaluation.
Similarities in the Fields
Although there are definitely differences between the jobs, accountants and auditors are often grouped together when describing their job details and earnings. And indeed, they are very similar in many aspects. For both jobs, bachelor degrees are among the minimal requirements, though some employers require you to have a master’s degrees from an accounting or auditing school. A person in either of these professions can earn anywhere from $39,000 to $109,000 a year, bringing the average to $62,000. The highest paying states for accountants and auditors are the District of Columbia, New York and New Jersey.
So even though the individual jobs, focuses and details of the professions are different, in the field of finance they are both respected and needed as much as the other. Companies and individuals depend on them for confirming that they are on track and going where they need to be. Both accountants and auditors are a vital part of our economy.