Identity Proofing

Difference between identification and authentication directly relates to identity proofing. 
Identity proofing is done during the identification prior to issuing credentials. An account within a network isn't just given to anyone that asks for one, but instead a user must provide some type of identification first.  Within a company, identification is provided by the individual when they are hired.  The HR department may then introduce the new hire and ask for an account to be created.  
A second use of identity proofing is performed after credentials have been issued. For example, online banks often ask for more information on a user (such as street they grew up on, first pet's name, middle name of oldest sibling, and so on.) Later, if the user is doing online banking from a different computer than they normally use, the Web site may recognize this and challenge the user to provide more than just their user name and password.