Accounting and Auditing Practices in USA

Accounting Practice
In USA

ACCOUNTING
• The process of Accounting is the comprehensive and systematic recording
of pecunary transactions relating to a business.
• Accounting can also be described the process of analyzing, reporting and
summarizing, the financial transactions to oversight agencies,
regulators and tax collection companies.
• The financial statements that adds up the large operations of the company,
financial position and cash flows over a specific period are a systematic
summary of various of financial transactions that may have turned up in the
financial period.

Auditing
• Auditing is the examination of a financial records of the company to
determine if they are accurate and verify if they are according to the
applicable rules laws and regulations.
• The External auditors come in from outside the organization to
examine financial and accounting records and give an independent
opinion on the records.
• The Law needs that all public companies should externally audit the
financial statements .