Difference between Audit and Investigation

Key Difference: Audit is the inspection, examination or verification of a person, organization, system, process, enterprise, project or product. On the other hand, investigation is an inquiry, or the act of detail examination of activities so as to achieve certain objectives.

An audit is the inspection, examination or verification of a person, organization, system, process, enterprise, project or product. It is used to determine the authenticity and validity or to ensure that a process is being followed. Also, an audit is mainly used in accounting to ensure the validity and reliability of information in the statements and that the information is free from material error. An audit can be done anytime.

An investigation is the process of detailed examination of activities so as to achieve certain objectives. It is the act of investigating; or is the study to enquire about a particular thing. It is an important factor in journalism for investigating various cases. It is the best method to tackle or identify the case; and make a thorough report about the case. Investigation is made in suspected places. In this, the main focus is on an inquiry into the accounts and financial matters of a business and to the overall aspects of it.

Comparison between Audit and Investigation:

	Audit	Investigation
Description	Audit means the inspection, examination or verification of a person, organization, system, process, enterprise, project or product.	Investigation means an inquiry, or is the act of detail examination of activities so as to achieve certain objectives.
Owners	Audit is conducted on behalf of owners only and they make the appointment.	Investigation may be conducted either by owner of the undertaking or by an outsider.
Purpose	To determine the true and fair view.	Varies from business to business
Process	Routine process	Investigation is not a regular process
Scope	It includes only an examination of the accounts of a business	It covers an examination of the accounts bur also covers an inquiry into other matter that are connected with the purpose for which it is undertaken
Period	Year or six months	May cover several years
Employees	Does not examine personally	May examine personally
Sequence	Usually conducted before investigation of accounts	Usually conducted after the audit of accounts
Person performing work	Audit is to be conducted by a chartered accountant	Investigation may be take on even by a non-chartered accountant
Legal Obligations	Audit is mandatory under law	There is no such legal obligations with regard to investigation