"Accounting Is Necessity While Auditing Is A Luxury For An Enterprise". Can Somebody Elaborate This?

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Accounting Is Necessity While Auditing Is A Luxury For An Enterprise". Can Somebody Elaborate This?
Suhail Ajmal Profile
Suhail Ajmal answered
Accounting is the act of recording and reporting financial transactions. Without accounting, you can't maintain any record. In today's world accounting is as necessary as much for an organization as blood for the human body.

Auditing is only needed on demand from the government or to maintain a standard in your organization. For example, being an ISO Certified company, you have to provide your audit report. Which means your company is maintaining accounts in their pure form.
thanked the writer.
Anonymous
Anonymous commented
so how can auditing be called as 'luxury' for the enterprise? plz explain why it is a luxury..
sweety asrani Profile
sweety asrani answered
Yes I agree with this statement that accounting is necessary as enterprise is so vast in incomes and expenses you can't learn all the transactions so we maintain accounts but how we will know that the value which we have written in accounts is correct or not it is only the auditing.
Auditing is luxury it adds the prestige as investors do believe that the report gvn by auditors gave a true and fair view of financial statements.

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