Accounting and auditing are two important functions in the world of finance. Accounting involves the recording, summarizing, and reporting of financial transactions, while auditing involves the examination and verification of financial statements.

Accounting is a necessity for every business, as it provides information about the financial position and performance of the organization. Accounting is used to prepare financial statements such as balance sheets, income statements, and cash flow statements. These statements provide valuable information to investors, creditors, and other stakeholders about the financial health of the organization. Without accounting, it would be difficult to keep track of financial transactions, and it would be impossible to prepare accurate financial statements.

On the other hand, auditing is not a necessity, but it is a luxury. Auditing is the process of reviewing and verifying the financial statements of an organization to ensure that they are accurate and free from material misstatements. Auditing is not required by law, but it is often done voluntarily by organizations to provide assurance to stakeholders about the accuracy of the financial statements.

Auditing is a luxury because it is an expensive process that requires a lot of time and resources. It is also not always necessary, as some organizations may have simple financial statements that do not require auditing. However, for organizations with complex financial statements, auditing is necessary to ensure that the financial information is accurate and reliable.

In conclusion, accounting is a necessity for every business, while auditing is a luxury. Accounting provides the basic financial information that is necessary for the operation of the business, while auditing provides assurance to stakeholders about the accuracy of the financial statements. While auditing is not always necessary, it is an important process for organizations with complex financial statements.