馃攳
Audit vs Assurance | Top Differences You Must Know! - YouTube
Channel: WallStreetMojo
[9]
hello everyone hi welcome to WallStreet
mojo to know more about this video
[15]
audit versus assurance watch the video
till the end and also if you are new to
[19]
this channel then you can subscribe us
by clicking the bell icon and that's given
[22]
below welcome everyone to our session or
now a difference between what is on it
[28]
and what is exactly assurance so
whenever let's say you going for a
[32]
you're working for one of the big firms
never see you know it's either audit or
[37]
it's it's a it's all Assurance
but there's a difference now what
[42]
exactly is difference is what we are
here to understand so let's begin with
[48]
the idea that in audit and assurance
they are the process basically used for
[52]
evaluation of the financial I'm talking
about audit here it is it is used for
[58]
the evolution of the financial records
of the company they are handed process
[61]
an audit and assurance is the process of
verifying these records available in the
[66]
company's accounting record as with the
accounting standard in principle so it
[71]
also verifies the what we call as the
accounting records or as per the
[77]
accounting standard in principle and
also it verifies that accounting records
[80]
is accurate or not
now the audit is basically the process
[84]
of evaluating the accounting entries
okay so these accounting entries have
[94]
been verified and it also whether it is
accurate or not and the audit is the
[99]
process of evaluating the accounting
entries present in the financial
[102]
statement the company the assurance is
basically the process of analyzing and
[106]
used in the assessment of the accounting
entries then the financial records
[109]
so assurance is usually followed by the
audit so audit comes first and then
[116]
comes the assurance once you do the
audit then you get get the issuance so
[120]
in this tutorial we'll look at the top
differences between the audit versus
[122]
assurance now first before jumping to
the difference let me make you
[127]
understand in detail what is audit first
city audit is basically the process of
[133]
for the accounting entries that is
present in the financial statement
[139]
accompany so audit checks the accuracy
it checks the accuracy of the financial
[147]
report and auditing includes and it
makes sure that it is ethically
[153]
presentation you know it is presented
fairly in an accurate manner it also
[158]
checks whether the financial reports it
also checks the financial reports are as
[166]
per the accounting standard and
[173]
accounting principles okay so these are
the two things that are taken into
[178]
consideration it also tells you about
any sort of misrepresentation done in
[184]
the financial records any misuse of the
funds any fraud any dishonest activity
[189]
is done in the company or done by the
company is taken into account
[192]
so these audits they are conducted by
the what we call as the internal auditor
[201]
and also the external auditor who are
basically the independent auditors now
[210]
when we talk about the internal auditor
[216]
when we talk about the internal audit it
is conducted by the employer of the
[221]
company belongs to the audit department
of the company so the internal audit
[224]
does audit frequently you can see that
and checks the record of the financial
[232]
reports whether these records are as per
the accounting standard in accounting
[236]
principle and also checks and verify
that the accounting record is accurate
[239]
or notes the company also hires what we
call as the external Auditor
[247]
so which provides an unbiased reports of
the financial statement and there are
[254]
many auditing firms available who acts
as an external auditor for many forms
[258]
and reports are prepared by these firms
in then they are considered accurate and
[263]
data provided are true and fair
representation of the company's
[276]
financial statements of an adjust status
well this was all about audit let's
[283]
understand what exactly is assurance all
about see assurance is basically the
[290]
process of analyzing and used in the
assessment of the of the accounting
[302]
entries and the financial records that
goes hand-in-hand so assurance is the
[312]
process of verifying the records
available in the company's accounting
[314]
record and as per the accounting
standard in principle which is also used
[318]
to verify that accounting record is what
we are checking is whether the
[323]
accounting record is accurate or not no
assurance is basically the process of
[334]
operations procedures and so on and so
forth so the main aim of the assurance
[339]
is to check the accuracy of the
financial statement it is used for the
[349]
for checking the accuracy of the
financial statement and assurance
[355]
specializes in assessing and improving
the quality of the information in a
[358]
company so it helps in decision making
in an organization as it it works on
[363]
thee more on the customer feedback and
these financial information and employee
[373]
feedback are the areas where information
is very much required in decision making
[377]
in an organization let's understand this
with the help of the infographics so we
[384]
start with the definition see audit is
the process of evaluating what the
[388]
accounting entries that is present in
the financial statement of the company
[391]
and it checks the accuracy evaluates
what accounting entry and checks the
[396]
accuracy but here the process is
analyzing and used in the assessment of
[402]
the accounting entry so it is a process
used in the assessment of the accounting
[406]
entries in the financial records and
these assurance is the process of
[410]
verifying the records available in the
company's accounting record and is as
[415]
per the accounting standard and
principle so it also verifies the
[419]
accounting record is accurate or not
this is the preliminary thing this is
[425]
post facto so audit has done first and
then the assurance is done so this is
[430]
the step wise process here the audit is
done by the internal of probably the
[436]
external auditor assurance is done by
the auditing firm in totality
[442]
what is the aim well here any sort of
misrepresentation if anything done you
[447]
know they have wrongly represented
inventory paper expense or any other
[452]
item in the financial statement or the
income statement then such
[457]
misrepresentation can be figured out and
any misuse of the funds or any fraud or
[461]
any dishonest activities done by the
company can be figured out when we talk
[465]
about this Assurance and so Assurance
specializes assessing the improving the
[469]
quality of the information in the
company assessing the and improving the
[473]
quality of the information and it helps
for the decision
[476]
this is more on the top end side where
you take the decisions where assessment
[482]
is done and here any sort of fraudulent
activities visited misrepresentation any
[488]
dishonest or fraudulent activities can
be determined it so as to make things in
[493]
a proper fashion so this was the aim now
what is exactly the use making sure
[499]
ethical presentation ethical
presentation no misrepresentation fairly
[503]
presented most important accurate the
number should not be haywire coming from
[508]
anywhere it also checks whether the
financial reports are as for the
[511]
accounting standard very important so
let's say in UK in UK basically IFRS
[517]
the ACCA prescribes IFRS and they
they follow IFRS in United States of
[524]
America they follow the US GAAP in India
the India's previously it was known as
[530]
accounting standard but now it has been
converted into India's so now they
[535]
follow in AS and the accounting
principles assurance is used to check
[540]
the accuracy again this is same thing of
the financial reports and also parts the
[544]
assurance that okay this perfect - all
the stakeholders stakeholders I mean
[549]
creditors debtors flyers investors
banks and we have sees the VCS any
[556]
stakeholders that there is no
misrepresentation done in the financial
[560]
records and no misuse of the funds no
fraud notice on this activity is done in
[564]
the company so once you found out here
you make that kind of assurance that
[567]
okay whatever has been shown is perfect
it's no problem in that so we are good
[572]
to go ahead on that well after learning
this is with the infographic you can say
[576]
that you know the auditing is the
process of evaluating the accounting
[580]
entries presented in the financial
statement
[587]
or it checks the accuracy of the
financial financial reports whereas the
[591]
if we talk about the assurance assurance
is the process of analyzing and used in
[600]
the assessment of the accounting entries
and the financial records so assurance
[607]
is also verifying the records available
in the company's accounting records and
[611]
his as per the accounting standard and
also as for the principal so it also
[616]
verifies that the accounting record is
accurate or not
[621]
second the audit tells about what we
call as the this representation done in
[630]
the financial reports and any misuse of
the funds any fraud any dishonest
[634]
activity is done in the company or done
by the company whereas assurance
[638]
specializing in assessing and improving
the what we call as the quality of
[647]
information in the company and it helps
in decision-making in the organization
[652]
3rd the audit is the first step and
it is followed by the assurance or it is
[662]
done by the internal auditor and
external assurance done by audit firm
[665]
when after all of this let me make my
final conclusion on this audit versus
[671]
assurance is hand-in-hand process and
used in evolution the financial records
[675]
of the company auditing includes making
sure ethically presentation fairly
[680]
presented accurate and also it checks
whether the financial reports are as for
[683]
the accounting standard an accounting
principle and assurance shake said there
[687]
is no pre misrepresentation done in the
financial records no misses it's the
[690]
no of funds, no fraud and no dishonest
done and inform the scene to all the
[694]
stakeholders to them come well I hope
you have got a fantastic idea regarding
[699]
this particular topic if you have
learned and enjoyed watching this video
[702]
please like comment on this video and
subscribe our channel for all the latest
[705]
updates thank everyone once again for
joining the session
Most Recent Videos:
You can go back to the homepage right here: Homepage