Statutory Audits

A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records. An audit is an examination of records held by an organization, business, government entity, or individual, which involves the analysis of financial records or other areas. It is a type of audit which is mandated by a Statute or Law to ensure true and fair view of the book of accounts of a Business. It is an examination of an entity’s financial records in accordance with the requirements of a government agency.

Frequently Asked Questions

What are examples of statutory audit?

Examples of Statutory Reports

• Statutory Report submitted at the statutory meeting of the company.
• Directors' Report to the Annual General Meeting.
• Annual Return.
• Auditors' Report.
• Reports by Inspectors appointed to investigate the affairs of the company.

Which type of audit is statutory audit?

A statutory audit is a mandatory audit of a company's financial records by an external entity. This audit is mandated by statute or law that governs an organization's principles and ethics.

Who needs a statutory audit?

All companies (Private Limited Company, One Person Company, Limited Company, Section 8 Company, Nidhi Company, Producer Company), irrespective of nature of business and sales turnover must appoint a Statutory Auditor.

Why do we do statutory audit?

A statutory audit is intended to determine if an organisation delivers an honest and accurate representation of its financial position by evaluating information, such as bank balances, financial transactions, and accounting records.