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Accounting and Auditing are two very important processes related to the financial activities and records of an organization. Accounting refers to the process of capturing, classifying, summarizing, analyzing and presenting the financial transactions, records, statements, profitability and financial position of an organization or entity. Accounting is the specialized language of business. Accounting work for an organization is done usually by its own employees. Accounting is carried out almost continuously. Accounting is categorized in various branches like cost accounting, management accounting, financial accounting; etc. Auditing refers to the critical examination of the financial records or statements of a business or an organization. It is obligatory for all separate legal entities. Auditing is carried out after the final preparation of the financial statements and accounts. Auditing involves carrying out the inspection and statutory audit of the financial statements, and giving a fair and unbiased opinion on whether the financial statements and records provide a true and fair reflection of the actual financial position of the firm.