Difference Between Audit & Investigation Essay

Probe is the act of detail scrutiny of activities so as to accomplish certain aims. Specially. probe is made in suspected topographic points. It finds out the nature and grounds of suspected countries but scrutinizing is the act of analyzing books of histories so as to turn out true and equity of operating consequences and fiscal place of a concern. Following differences can be seen between scrutinizing and probe:

1. Aim An audit is carried out for the intent of determining whether or non the balance sheet and net income and loss history show true and just position of the province of company’s personal businesss and its net income or loss. But an probe aims at set uping a fact or is carried out for some peculiar purpose i. e. to cognize the fiscal place of the concern or the earning capacity of the concern etc.

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2. On Behalf An audit is carried out on behalf of the owner of the concern. while an probe may be conducted on behalf owners when they suspect any fraud in their concern or on behalf of outside parties who wish to impart money or intend to buy concern or at the case of the authorities on the petition of the stockholders.

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3. Scope An audit includes merely an scrutiny of the histories of a concern whereas an probe covers non merely an scrutiny of the histories but besides an enquiry into other relevant affairs connected with the intent for which it is undertaken.

4. Use Of Techniques An audit is normally a trial checking but an probe is a much more thorough scrutiny of the books of histories. It goes into the deepness of the job and supports on looking for far more definite grounds to get at a decision that it can firmly confirm. Further. probe may be conducted even after the audit of the histories.

5. Period An audit is related to merely a twelvemonth or six months while probe may cover several old ages.

6. Statutory Duty In the instance of joint stock companies. audit is mandatory under jurisprudence while there is no such statutory duty with respect to probe.

7. Examination Use Of Policies In audit. an hearer has to see whether the methods of rating and other accounting policies have been systematically followed or non and he has to guarantee that all revelations have been decently made in the fiscal statements. while an probe is non at all edge by accounting conventions. policies and revelation demands.

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