Auditing begins where ________ ends.

The correct answer is Accounting

Key Points

•  Audit: As per The Institute of Chartered Accountants of India (ICAI) “An audit is an independent examination of financial information of any entity, whether profit-oriented or not, and irrespective of its size or legal form, when such an examination is conducted with a view to expressing an opinion thereon”
• Accounting:  Accounting is the art of recording, classifying, and summarising the information of financial nature in the books of accounts to ascertain the true and fair financial position and profit and loss of the organization.

Important Points

• Auditing begins where accounting ends.
• Accounting serves as the backbone of auditing.
• Once the books of accounts are finalized and closed for the accounting year using the accounting process, then only the process of auditing can begin.
• An auditor is supposed to check all the vouchers including cash payments, cash receipts, purchases, sales, fixed assets.