Difference between Accountant and Auditor:
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.
Is a person who must be a chartered accountant. The auditor is an independent person and not an employee and
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|
|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.|
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.