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SSC Audit Tax Finance P-II QUESTION #6221
Question 1
The 'Expectation Gap' often arises because the public confuses auditing with accounting. Which statement best distinguishes the two?
  • Auditing is done by directors; Accounting is done by Chartered Accountants
  • Accounting is the process of recording data; Auditing is the independent examination of that data✔️
  • Accounting provides an opinion; Auditing provides the facts
  • There is no distinction; they are the same activity
Correct Answer Explanation
Accounting is the systematic recording and reporting of financial info, while auditing is the concern with whether that info reflects a true and fair view.