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Difference Between Accountant and Auditor

Difference between Accountant and Auditor:

 Accountant:

         An accountant is a person who has knowledge of accounting and maintains the books of accounts of a company; he may or may not be a chartered accountant. An accountant is an employee receives salaries for his work.

accountant vs auditor
accountant vs auditor

Auditor:

         Is a person who must be a chartered accountant.  The auditor is an independent person and not an employee and

accountant vs auditor
accountant vs auditor

receives audit fee for his work done.He must have strong auditing knowledge.

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The following point will help you to understand the

The difference between Accountant and Auditor.

 

Term of difference

Accountant

Auditor

Status   Accountant is an employee of a business Auditor is an independent person.
Knowledge Accountant must have accounting knowledge. Auditor must have accounting and auditing knowledge.
Qualification He may or may not be a chartered accountant. He must be a chartered accountant.
 Advice Accountant has a right to gives advice on the accounting system. Auditor has no right to gives advice on business matters.
Reward Accountant receives a salary as a reward for work done He receives a fee as a reward for audit work done.
Liability Accountant has no liability for preparing final accounts. He has liability after presenting audit report.
Efficiency Accountant determines the efficiency of all other departments except his own. He determines the efficiency of all business functions but not his own.
Report Accountant work required no report. Auditor work requires a separate report to owners.
Cycle Accountant work starts with journalizing and end with final accounts. He works starts with understanding clients ‘system and ends with an opinion. 

Conclusion:

        The main difference between Accountant and Auditor is that auditors conduct an independent assessment of the accuracy and fairness of a company’s financial statements prepared by an accountant, while Accountants record financial records to be examined by the auditor. Auditors and accountants work together to ensure compliance. An accountant is from the firm while the auditor is from outside the firm.

About the author

Salman Qureshi

Salman Qureshi is an Accountant by profession & he loves to write on Commerce & Management Sciences Subject to assist Students. Hope you guys will like his effort.

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