The difference between Auditing and

Investigation
is that auditing is examining and reporting on books of accounts of a company while the
investigation is a process of knowing a particular fact, truth or incident. Auditing requires
general inspection whereas investigation requires focus and in-depth examination. Auditing is
conducted annually but the investigation is conducted according to the requirement of the
client.
An Auditor is a person authorized to verify or review the accuracy of financial records while
an investigator carries out an investigation or a formal inquiry.

Comparison Table Between Auditing and Investigation

Parameter of
Auditing Investigation
Comparison
Is an examination or inspection of records,
An extensive investigation
Definition processes and activities to ensure compliance
to prove a particular fact.
and integrity.
Depth General examination. Critical and extensive.
To build and maintain trust within an entity or
This is only conducted
group, prevents fraudulent activities and
Purpose when there is a potential
ensuring high standards and processes is
dishonesty on a certain fact.
always upheld.
Nature of
General Confidential
Report
Mandatory Yes No
Performing
Internal or External Auditor/Accountant Experts
entities