Difference Between Audit And Inspection

Difference Between Audit And Inspection

The major dissimilarities or differences between audit and inspection can be highlighted as follows:

1. Introduction

Audit: It is an act of evaluating and measuring the performance in order to prove reliability and validity.

Inspection: It is a observation or examination of organizational activities and properties according to the predetermined standards.

2. Formalized Or Not

Audit: It is more formalized than inspection

Inspection: It is less formalized than audit

3. Frequency

Audit: It is conducted annually at the end of accounting period

Inspection: It is conducted regularly (weekly, monthly, quarterly etc) throughout the year.

4. Scope

Audit: It has wider scope than inspection

Inspection: It has limited scope than audit

5. Conducted By

Audit: Professional auditor is required to conduct audit work.

Inspection: It can be conducted by owner or employee

6. Rules And Standards

Audit: It follows specific rules and audit standards

Inspection: No fixed rules and standards

7. Mandatory

Audit: It is mandatory for all business organizations

Inspection: It is not mandatory

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8. Time

Audit: It takes more time and effort to carry out auditing task

Inspection: It takes less time for inspection

9. Structured Or Not

Audit: It is more structured than inspection

Inspection: It is less structured

Audit Vs Inspection (Comparison Chart)

Basis	Audit	Inspection
Introduction	Measurement and evaluation of performance to ensure validity and reliability	Observing and examining organizational activities as per the predetermined standard
Formality	More	Less
Frequency	Annually	Weekly, monthly or quarterly
Scope	Broader	Limited
Done By	Auditor	Owner or employee
Specific Rules	Yes	No
Mandatory	Yes	No
Time Taken	More	Less
Structured	More structured	Less structured

I hope this post is helpful to understand the difference between audit and inspection and to make comparison between them.

Main Differences