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Accounting What Is Accounting? Accounting is the structured process of recording, summarizing, analyzing, and reporting financial transactions for businesses or organizations. It serves as the foundation for building financial statements and ensuring accuracy in financial communication. In essence, accounting transforms raw financial data into insightful information that stakeholders —such as management, investors, lenders, and regulators—use to make informed decisions.

Audit What Is an Audit? An audit refers to a formal examination and verification of financial records , processes, and statements—conducted by internal or external professionals to ensure accuracy, reliability, and compliance with applicable standards. It’s a critical tool for stakeholders, regulators, and lenders to assess an organization’s financial health. Audits enhance transparency, detect errors or fraud, and inform decision‑making. Purpose & Importance of Audits 1. Trust & Transparency -  Audits validate that financial records are free from material misstatement, promoting confidence among investors, lenders, regulators, and the public. 2. Regulatory Compliance -  Certain entities— publicly traded companies , banks, investment firms, charities—must undergo statutory audits to meet legal and regulatory standards. 3. Fraud Detection & Prevention -  Regular audits help identify misreporting or fraudulent activities. They also act as a deterrent, r...