MEANING AND DIFFERENCE BETWEEN VERIFICATION AND VALUATION

1. Verification: Verification is the process of ensuring that something, such as data, information, or documents, is accurate, truthful, or consistent with a certain standard or expectation. In various contexts, it might involve confirming the authenticity, correctness, or completeness of something.

2. Valuation: Valuation refers to the process of determining the economic value of an asset or liability. This could be anything from a company, real estate, intellectual property, to financial instruments such as stocks and bonds. Valuation is typically conducted for purposes such as investment analysis, financial reporting, taxation, or mergers and acquisitions.

Now, let’s compare verification and valuation in a table format:

Now, let’s summarize the key differences point-wise:

1. Definition:
   • Verification ensures accuracy or truthfulness, while valuation determines economic worth.
2. Purpose:
   • Verification confirms authenticity or correctness, while valuation assesses financial worth.
3. Context:
   • Verification is commonly used in auditing and quality control, while valuation is prevalent in finance and investment.
4. Focus:
   • Verification focuses on confirming the accuracy of information, whereas valuation focuses on determining monetary value.
5. Examples:
   • Examples of verification include validating financial statements, while examples of valuation include assessing company worth for mergers.