Introduction:
Accounting and auditing are two closely related functions in the field of finance. While accounting focuses on recording, summarizing, and reporting financial transactions, auditing involves examining and verifying financial records to ensure accuracy and compliance. This response aims to discuss the necessity of accounting and the role of auditing in detail.

Importance of Accounting:
Accounting is a crucial function for any organization as it provides essential financial information that helps in decision-making, planning, and controlling. Here are some reasons why accounting is necessary:

1. Financial Reporting: Accounting enables the preparation of financial statements that reflect the financial position, performance, and cash flows of a company. These reports are crucial for stakeholders, including investors, creditors, and regulatory authorities, to assess the company's financial health and make informed decisions.

2. Compliance: Accurate accounting is vital to ensure compliance with legal and regulatory requirements. By following defined accounting principles and practices, organizations can meet reporting obligations, pay taxes correctly, and avoid penalties or legal issues.

3. Internal Control: Accounting helps establish internal control systems that safeguard assets, prevent fraud, and ensure the accuracy and reliability of financial information. This is done through processes such as segregation of duties, regular reconciliations, and internal audits.

4. Financial Analysis: Accounting data provides a basis for financial analysis, including ratio analysis, trend analysis, and budgeting. These analyses help management assess performance, identify areas of improvement, and make strategic decisions to achieve organizational goals.

The Role of Auditing:
Auditing complements accounting by independently examining and verifying financial records. Here's why auditing is necessary:

1. Assurance of Accuracy: Auditors review financial statements, supporting documents, and internal controls to ensure the accuracy and reliability of accounting records. This provides assurance to stakeholders that the financial information presented is trustworthy and free from material misstatements.

2. Compliance Verification: Auditors assess whether financial statements comply with applicable accounting standards, laws, and regulations. This helps organizations demonstrate their adherence to legal requirements and industry norms.

3. Fraud Detection: Auditors play a crucial role in detecting and preventing fraudulent activities. Through detailed examination of financial records, they can identify irregularities, unauthorized transactions, or potential fraud indicators. This helps protect the interests of stakeholders and maintain the integrity of financial reporting.

4. Recommendations for Improvement: Auditors provide valuable insights and recommendations to improve internal controls, risk management practices, and overall financial operations. Their objective perspective helps organizations identify weaknesses and implement corrective measures to enhance efficiency and effectiveness.

Conclusion:
In conclusion, accounting is a necessity for organizations as it provides the foundation for financial reporting, compliance, and decision-making. Auditing, on the other hand, complements accounting by verifying the accuracy of financial records and providing assurance to stakeholders. Both functions are essential in maintaining transparency, accountability, and trustworthiness in the financial operations of an organization.