Auditing vs Investigation

Auditing
Auditing is the process of verifying and validating the financial statements of an organization to ensure that they conform to the generally accepted accounting principles. It involves reviewing the books of accounts, documents, and records to determine the accuracy and completeness of the financial statements.

Investigation
Investigation is the process of examining a specific area of concern in detail to uncover any irregularities, fraudulent activities or illegal operations. It goes beyond the scope of auditing and involves a detailed examination of evidence, interviews, and analysis of financial transactions.

Where auditing ends investigation begins
Auditing and investigation are both essential components of financial management. However, auditing is limited to verifying the accuracy and completeness of financial statements while investigation goes beyond this to uncover any fraudulent or illegal activities in an organization. Therefore, when the auditors come across discrepancies or irregularities in the financial statements, they may recommend a deeper investigation to uncover the root cause of the issue.

Conclusion
In summary, auditing and investigation are both critical components of financial management, but they differ in their scope and objectives. While auditing is limited to verifying the accuracy and completeness of financial statements, investigation goes beyond this to uncover any fraudulent or illegal activities. Therefore, where auditing ends, an investigation begins.