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What is Auditing?
Auditing is an official verification and examination of accounts and records, like financial accounts of a company or organization. Professional, who performs audits in various companies and other places are termed as auditors.
The word audit has been derived from a Latin word audire, it means to hear. In medieval times, auditors used to hear the accounts and check them that the company or organizations were not careless or deceitful.
What is Taxation?
Taxation is a process of government for collecting money from its citizens to pay for public services, for example: public parks, libraries, etc.
Types of taxes:
1. Direct Tax: Those taxes, which are directly paid to the government through the taxpayer. For example: corporation tax, income tax, etc.
2. Indirect Tax: Those taxes, which are paid to the government by an intermediary. These types of taxes are applied on sale of goods and services. For example: service tax, sales tax, etc.