 Hello and welcome to the session in which we will distinguish between auditing and accounting, the difference between auditing and accounting. Confusion often arises between auditing and accounting because most auditing is auditing financial accounting information and auditors they have they have to have experience some sort of an experience or knowledge in accounting. Now also the title certified public accountant CPAs because auditors are CPAs they're going to confuse auditors a with accountant it doesn't really help. Accounting involves organizing economic event basically looking at information transaction organizing those transactions in going from the general journal to the ledger to the financial statement to help users make financial decision that's what accounting is. Recording transaction and events and report those transaction and events to the users to make a better financial decision so accountant what should they know they should grasp principles and rules such as such as in the United States we use generally accepted accounting principle or known as GAAP for accurate data preparation as well as established effective system for timely recording so they they have to have some sort of a system that's the job of an accountant to record the information according to the principles. Before we proceed any further I have a public announcement about my company farhatlectures.com. Farhat accounting lectures is a supplemental educational tool that's going to help you with your CPA exam preparation as well as your accounting courses my CPA material is aligned with your CPA review course such as Becker, Roger, Wiley, Gleam, Miles my accounting courses are aligned with your accounting courses broken down by chapter and topics my resources consist of lectures multiple choice questions true false questions as well as exercises go ahead start your free trial today now let's go from the accountant to the auditor auditors what do they do auditing during an audit assuming we're auditing accounting data auditor verify if they record the transaction by the accountant so the accountant already recorded the transaction now the auditor is determining whether it represent the true economic event now obviously they have to establish they have to use not establish they have to adhere to accounting standard so auditor assess the proper recording according to a certain standard in the US what's the standard GAAP generally accepted auditing principle they see okay that they indeed recorded this transaction properly according to those principles so that's basically checking the work of the accountant now beside accounting auditor must also gather they need to know how to gather and how to interpret audit evidence setting them apart from accountants accountants don't have to do that accountants record the transaction report the transaction to the users who's going to make a decision based on this transaction also designing audit procedures how to conduct an audit selecting items for testing which item to test because in audit you will see later you cannot test everything you have to make a decision about which areas to audit which transactions which data to audit and which not to audit which is called sampling and also evaluating the outcome of this process that's unique to auditing totally different from accounting what should you do now go to far hat lectures look at mcq's true false if you are an accounting student invest in yourself don't shortchange yourself accounting is an important if you are an accounting student invest in yourself accounting is a rewarding career auditing is also a rewarding career good luck study hard and of course stay safe