The best accountants don’t just balance books; they balance the scales of financial justice.
Brian Clark
South Africa’s economy is built on industries that demand accuracy, transparency, and accountability - particularly in financial reporting. Whether you're a matriculant thinking about your next step, or a working professional considering a career change in the financial world, understanding the difference between auditor and accountant is key to choosing the right path.
Many assume that these roles are interchangeable, but in this article, you are about to find out about the difference between auditor and accountant in a South African context.
In looking at this accounting and auditing difference, we’ll look at the careers that shape both accounting and bookkeeping and even suggest where to find an accounting tutor to help you on your journey.
So, What’s the Difference Between Auditor and Accountant?
So, what’s the difference between accounting and auditing? What programme should you follow at university to become an accountant or auditor?
While both professions often start with the same academic foundation, their daily responsibilities, career paths, and even the way they interact with businesses vary considerably.
Let’s start with the technical side of things:
- Accountants usually work within a company. They’re either part of the finance department or act as contracted professionals managing ongoing financial records.
- Auditors, on the other hand, are usually external. They come into a company to inspect the financial reports prepared by accountants.
- Accountants follow International Financial Reporting Standards (IFRS), while auditors adhere to International Standards on Auditing (ISA).
- The work of accountants is continuous and operational, while auditors typically get involved annually or quarterly.
- Auditors are brought in to verify the accuracy and legality of the financial reports and their role is often regulatory.
So, is there a difference between auditor and accountant? Absolutely.
And it’s crucial to understand if you’re considering either career path.
The Shared Foundation: Education and Skills
Despite the accounting and auditing difference, the two roles are built on similar academic foundations. Both accountants and auditors typically need a Bachelor of Commerce (BCom) in Accounting or a related field. From there, you can begin to specialise your professional accounting journey.
In South Africa, universities like Wits, UCT, Stellenbosch, and UP all offer top-tier BCom programmes. But beyond a degree, practical experience is key. For instance, if you’re aiming to become a Chartered Accountant (CA(SA)), your journey will include SAICA accreditation, the completion of training contracts, and passing rigorous exams like ITC and APC.
For many, this is where an accounting tutor can be invaluable. An experienced tutor can help you prep for your exams, sharpen your understanding of financial principles, and build the confidence to succeed, whether you aim for a career in auditing or accounting. So, why not consider accounting classes to further enhance your skills?
What Does an Accountant Do in South Africa?
In short, an accountant is the backbone of a company’s financial operation. They manage the company’s ledger, reconcile accounts, generate monthly reports, and prepare year-end financial statements. As you can imagine there is significant responsibility attached to a role that requires maintaining financial order and helping a business plan for growth.
Typical responsibilities include:
Accountants may also manage payroll, evaluate internal controls, and even assist during audits. So, while the difference between accounting and auditing is distinct, the two functions are often interconnected. In short, accountants provide the groundwork that auditors assess.
Remember that in today's competitive job market, South African companies employ accountants who not only know understand numbers but also their strategic impact.
If you’re just starting out, an accounting tutor can guide you through the critical principles and software skills needed to excel.
So, What Does an Auditor Do Then?
Now that we have looked at the difference between accounting and auditing in broad strokes, let’s take a closer look at the role of an auditor. Firstly, it’s worth repeating that while an accountant builds the financial statements, the auditor reviews them. Think of an auditor as a financial detective, they come in after the fact to verify that everything adds up and that there’s no misstatement or fraud.
In South Africa, auditors play a significant role in public accountability. Whether it's for a listed company on the JSE or a large non-profit organisation, auditors are there to ensure that stakeholders can trust the reported financials.
Do these key responsibilities sound exciting to you?
If so, then perhaps auditing is for you.
To sum up the important role of an auditor, remember that given the critical nature of this work, they need to be independent and impartial. Again, this highlights the accounting and auditing difference - auditors must operate at a distance to maintain credibility.
The Real-World Applications: Why it Matters in South Africa
When comparing accounting and bookkeeping with auditing, it is clear that South Africa’s business environment relies heavily on both.
Small businesses might only need a bookkeeper or an accountant to keep their business compliant. On the other hand, larger corporations, especially those listed on the Johannesburg Stock Exchange, are legally required to undergo annual audits.
If pursuing a career in finance appeals to you, you can be sure that the demand for bookkeepers, accountants and auditors is high across every sector and industry in South Africa.
The Accounting and Auditing Difference at a Glance
Accountants and auditors play distinct but complementary roles in the financial landscape.
Accountants are responsible for preparing financial data on an ongoing basis —daily or monthly— and are typically employed by the company. In addition, their work focuses on operational and strategic aspects that adhere to standards like IFRS or GAAP.
Auditors, on the other hand, periodically verify that financial data is accurate and compliant, usually on an annual or quarterly basis. They are usually external third-party professionals who follow the International Standards on Auditing (ISA). So, the next time someone asks whether there's a difference between an auditor and an accountant, you can confidently say yes!
Career Progression and Salaries in South Africa
In South Africa, both auditors and accountants can earn impressive salaries, depending on their experience and qualifications. According to recent local data, the average accountant earns between R350 000 and R600 000 annually, while salaries are higher in the private sector or at multinational firms.
The average auditor earns slightly more, typically between R400 000 and R700 000, especially when working at firms like PwC, EY, Deloitte, or KPMG.
These figures reflect the responsibilities involved, while accounting and bookkeeping focus on recording and analysis, auditors carry the weight of verifying and certifying those figures.
Remember that working with an accounting tutor during your studies or articles can turn into a major return on invest especially if you are preparing for board exams or aiming to enter a top-tier accounting firm!
Choosing Your Path: Auditor or Accountant?
So, is one better than the other? That depends entirely on you.
Choose accounting if:
- You enjoy routine, organisation, and working within a business.
- Being immersed in a company’s culture is important to you.
- You want to specialise in areas like tax, payroll, or corporate finance.
- You prefer accounting and bookkeeping tasks and gradual growth within a single company.
Choose auditing if:
- You like investigation, analysis, and working independently.
- You’re comfortable travelling or working with multiple clients.
- The idea of being anonymous and working alone appeals to you.
- You want to specialise in compliance, assurance, or forensic auditing.
If you’re unsure where to start, getting help from an accounting tutor or mentor can make a world of difference. Remember that many South African tutors are industry professionals who can help you figure out where your interests and strengths are best aligned.
Know the Difference, Choose Your Future
In a world that demands financial accuracy and accountability, both accountants and auditors play critical roles.
While they share an academic foundation, ultimately the difference between auditor and accountant lies in their responsibilities, independence, and how they contribute to a company’s success.
Understanding the difference between accounting and auditing helps businesses stay compliant, but it can also help you to choose a career path that is best suited to you. Whether you're drawn to accounting and bookkeeping or prefer the independence of auditing, South Africa offers ample opportunities for growth and development in both fields.
And remember - when in doubt, a knowledgeable accounting tutor can help you navigate the journey from student to skilled professional.
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