There are differences between auditing and accounting even when they do almost the same things and have almost similar jobs. They have varying duties that one can do and the other cannot and vice versa.
We can give you the differences between the two and what exactly they do as we are one of the leading audit firms in Dubai, having more than 30 years of knowledge in these fields. Reading the below will give you the idea of what accountants & auditors are all about and what their differences are.
The Responsibilities of an Accountant
Accountants take care of the lifeblood of every business—the accounting side of things. The financial transactions that include payables and receivables, reconciliation of books, payrolls, tax return filings, etc.
Another responsibility of accountants is to analyze a client’s financial information and communicate what it means to the said client (which can be a company or an individual person). They are expected to explain their client’s standing when it comes to their finances in the economy in a way that is understandable by their client. The financial report is comprised of income statements, cash flow statements, balance sheets, and shareholder’s equity statements that are all made by accountants.
Accountants can also be asked to ensure the financial security of a business, guaranteeing that clients are making the right moves for gaining more profit, making sure that inflows and outflows are balanced, etc.
Find more info: 4 Types of Audit Report that You Need to Know
The Duties of Auditors in Dubai
Even if auditors have almost the same tasks as those of accountants, their responsibilities are still different.
Basically, an auditor reviews the operations of a company, especially their financial data, and give opinions and suggestions on how to deal and handle loopholes that could cause them serious problems. They primary ensure that the financial statements are correct and fair, in accordance with an international regulatory standard.
In auditing a company, an auditor needs to ask about the nature of a business and what it is all about to further understand its operations and its way of reporting financial information. They also evaluate the control system of a company, observe and review a company’s physical inventory count, making sure that all accounts are correct by confirming them with third parties.
An auditor spends a day or more, depending on the amount of data to be reviewed, in auditing a business. All the necessary and needed evidence are gathered to establish a report and prepare solutions for any problems or issues that are seen. These solutions are expected for a company to have a better performance than before the audit, be more efficient, and profitable as well.
What is the Difference Between an Accountants & Auditors?
In a simple manner of explanation, accountants prepare the financial statements and the auditors review them to ensure that they are made in a fair and correct way.
For other differences, accountants typically work in a company to handle their accounts and financial data and information while auditors are outsourced by companies to ensure that what their accountants are doing is accurate and meets the regulatory standards.
Accountants usually deal with accounting daily whereas auditors are frequently hired to check a company either quarterly or annually.
Companies are normally required to hire or even outsource an accountant to manage that side of their business while an auditor is usually hired quarterly or annually depending on the requirement of a country or jurisdiction.
Farahat & Co. has been one of the leading auditing firms in Dubai, UAE that has a team of some of the best auditors in Dubai that have greatly helped a lot of individuals and businesses in various sectors.
All the dilemmas and issues that are being faced by companies today have been handled and dealt with by our team. We can assure you that our service is nothing but quality, and our approach is graceful and professional.
Because of our experience in this field, we are able to say that we have the edge in both auditing and accounting. With all the knowledge and solutions that we have hidden in our sleeves, we can make sure that we will walk out from a project, leaving our clients satisfied and happy.
Aside from managing your accounts and ensuring that they are all safeguarded and correct, we can also guarantee that you will understand whatever else you do not yet grasp with regard to accounting and auditing and how they all affect your business. Whenever you need any information, we can simply provide them to you easily.
You can call us and book a consultation with us today for you to find out for yourself that we are indeed one of the best accounting and auditing firms in Dubai that you will ever work with.