Statutory Audit
A Statutory Audit is an independent examination of the financial statements and records of an organization, conducted by a qualified auditor or audit firm, to ensure compliance with specific laws and regulations. The audit is mandated by law and aims to verify the accuracy, completeness, and fairness of the financial reporting.
What is Statutory Audit?
A Statutory Audit is an independent examination of the financial statements and records of an organization, conducted by a qualified auditor or audit firm, to ensure compliance with specific laws and regulations. The audit is mandated by law and aims to verify the accuracy, completeness, and fairness of the financial reporting.
A Statutory Audit is a legally required review of financial statements and records to ensure accuracy and regulatory compliance.
Eligibility Criteria
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Company Type: Applicable to companies as per the Companies Act, 2013, including public and private limited companies.
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Turnover Threshold: Mandatory for companies with a turnover exceeding ₹1 crore.
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Net Worth: Required for companies with a net worth exceeding ₹1 crore.
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Borrowing Threshold: Applies to companies with borrowings from banks or financial institutions exceeding ₹1 crore.
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Non-Company Entities: Certain non-company entities like firms and societies may also require a statutory audit if specified by relevant laws.
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Compliance with Laws: Must adhere to the Companies Act and other relevant regulations.
Benefits
- Legal Compliance: Ensures adherence to statutory regulations and laws.
- Enhanced Credibility: Provides stakeholders with assurance regarding the accuracy of financial statements.
- Fraud Detection: Identifies and mitigates risks of fraud and financial mismanagement.
Process
- Audit Planning: Develop an audit plan and timeline.
- Fieldwork and Testing: Test financial transactions, internal controls, and compliance.
- Preparation of Financial Statements: Review and prepare statements as per statutory requirements.
- Audit Reporting: Issue a report on financial statements.
- Follow-up and Support: Address findings and provide recommendations.
Documents Required
- Financial statements (balance sheet, profit & loss statement).
- Bank statements and reconciliation statements.
- Invoices, receipts, and contracts.
- Previous audit reports and financial records.
Our Support
- Pre-Audit Planning: Assist in setting up an audit plan.
- Audit Execution: Conduct the audit with a focus on compliance and accuracy.
- Report Preparation: Draft and review the audit report.
- Post-Audit Support: Provide guidance on addressing audit findings.