Accounting is a method (is way to do something) to count.
- recording and summarizing an organizations transactions or business deals, such as purchases and sales.
- Reporting them in the form of financial statements.
Accountancy is the work or profession of an account.
The accounting or accountancy profession has professional organization which operate their own training and examination system and make technical and ethical rules that is relate to accepted ways of doing things.
Financial accounting includes
- bookkeeping ; Bookkeeping is the day to day recording of transactions.
- preparing financial statements for shareholders and creditors. Stakeholder or shareholder and creditor are the people or organizations who have lent money to a company.
Management accounting involves the use of accounting data by managers for making plans and decisions.
- examining a company’s systems of control and the accuracy or exactness of its records,
- looking for errors or possible fraud; where the company may have deliberately given false information.
- Internal auditors are an internal audit that is carried out by a company’s own accountants.
- External auditors are an external audit that is done by independent auditors who are not employees of the company.
The external audit examines the truth and fairness of financial statement because It tries to prevent creative accounting.
Creative accounting is a recording transactions and values in a way that produces a false result, usually an arroficially high profit.
Accountant is a person who is employed to keep or examine financial record for business in a public office.
Law is a something relate with accounting to established by the government.
Rule is a standard that have been established by independent organizations such as The Accounting Standard Board (ASB) and by the accountancy profession itself.
Accounting and financial statements are prepared for creditors, shareholders, and tax authorities.