Ans:-
In general, Auditing is performed in respect true & Fair view presentation of entities financial Records, but Investigation is performed to prove a certain fact which is material misstatements.
Auditing is a process of identifying whether the results of accounting information are accurate and according to the specified norms or not. Unlike investigation is a severe examination of specific records so as to highlight a fact.
Major Differences between Auditing and Investigation
The following are the major differences between auditing and investigation:
- The process of inspecting the financial statement of an entity and then giving an independent opinion on it is known as Auditing. A careful and detailed study of the books of accounts to discover truth is known as Investigation.
- Auditing is a general examination while Investigation is critical in nature.
- The evidence obtained from audit process is persuasive. Conversely, the nature of evidence obtained from Investigation process is conclusive.
- Auditing is conducted every year, but Investigation is conducted as per the needs of the organization.
- Auditing is performed by the auditor whereas an expert team does the performance of an investigation.
- Auditing is compulsory for every company. On the other hand, the investigation is discretionary.
- Auditing verifies the true and fair view of the financial statement while Investigation is performed to establish a fact.