Auditing begins where accounting ends. Explanation:
- Accounting involves the systematic recording, summarizing, and preparation of financial statements such as the trial balance, profit and loss account, and balance sheet. It starts after bookkeeping is completed and focuses on compiling and presenting financial data accurately.
- Auditing starts after the accounting process is complete. It is an independent and critical examination of the financial statements and the underlying books of accounts prepared by the accountant. The auditor verifies the accuracy, validity, and reliability of the accounting records by examining vouchers, documents, and other evidence.
- The auditor’s role is to ensure that the financial statements present a true and fair view of the financial position and comply with applicable laws and standards.
Thus, auditing "begins where accounting ends" because auditing depends on the finalized accounts prepared by the accountant to perform its verification and evaluation functions
