Difference between Audit and Investigation

Key Difference: Audit is the inspection, examination or verification of a person, organization, system, process, enterprise, project or product. On the other hand, investigation is an inquiry, or the act of detail examination of activities so as to achieve certain objectives.

An audit is the inspection, examination or verification of a person, organization, system, process, enterprise, project or product. It is used to determine the authenticity and validity or to ensure that a process is being followed. Also, an audit is mainly used in accounting to ensure the validity and reliability of information in the statements and that the information is free from material error. An audit can be done anytime. 

An investigation is the process of detailed examination of activities so as to achieve certain objectives. It is the act of investigating; or is the study to enquire about a particular thing. It is an important factor in journalism for investigating various cases. It is the best method to tackle or identify the case; and make a thorough report about the case. Investigation is made in suspected places. In this, the main focus is on an inquiry into the accounts and financial matters of a business and to the overall aspects of it.

Comparison between Audit and Investigation:

 

Audit

Investigation

Description

Audit means the inspection, examination or verification of a person, organization, system, process, enterprise, project or product.

Investigation means an inquiry, or is the act of detail examination of activities so as to achieve certain objectives.

Owners

Audit is conducted on behalf of owners only and they make the appointment.

Investigation may be conducted either by owner of the undertaking or by an outsider.

Purpose

To determine the true and fair view.

Varies from business to business

Process

Routine process

Investigation is not a regular process

Scope

It includes only an examination of the accounts of a business

It covers an examination of the accounts bur also covers an inquiry into other matter that are connected with the purpose for which it is  undertaken

Period

Year or six months

May cover several years

Employees

Does not examine personally

May examine personally

Sequence

Usually conducted before investigation of accounts

Usually conducted after the audit of accounts

Person performing work

Audit is to be conducted by a chartered accountant

Investigation may be take on even by a non-chartered accountant

Legal Obligations

Audit is mandatory under law

There is no such legal obligations with regard to investigation

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Comments

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Thank you so much I get a knowledge about the investigation I got confused when I read my notes It's a very best way to present answer Thanks a lots

Thank you so much...

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