Statutory Auditing

What Precisely is a Statutory Audit?

A statutory audit is a legally mandated review of a company’s financial statements to ensure they present a true and fair view of the company’s financial position. It verifies compliance with accounting standards, tax laws, and regulatory requirements.

Statutory audits are compulsory for companies registered under the Companies Act, 2013 or other governing statutes, and are typically conducted annually by a qualified Chartered Accountant.

✅ Our Statutory Audit Services Include:

1. Examination of Financial Statements

• Detailed review of the Balance Sheet, Profit & Loss Account, Cash Flow Statement, and Notes to Accounts

• Ensuring compliance with Indian Accounting Standards (Ind AS/AS)

• Accuracy check of disclosures and financial reporting

2. Books of Accounts Review

• Scrutiny of ledgers and journal entries

• Testing of transaction authenticity and completeness

• Identification of omissions, misstatements, or inconsistencies

3. Compliance Verification

• Assessment of compliance with:

  • Companies Act, 2013

  • Income Tax Act

  • GST laws and other applicable regulations

• Verification of statutory records like:

  • Register of members

  • Board meeting minutes

  • Resolutions passed

4. Internal Controls Assessment

• Evaluation of internal financial controls and systems

• Recommendations for improvement in processes and risk management

• Testing for control effectiveness and fraud risk

5. Audit Report Preparation

• Issuance of audit report under Section 143 of the Companies Act

• Reporting under CARO (Companies Auditor’s Report Order) where applicable

• Disclosure of material observations, if any

6. Stakeholder Liaison

• Coordination with:

  • Company management

  • Secretarial and legal teams

  • External regulatory authorities

• Assistance in handling notices from ROC, Income Tax, and other regulators

🏢 Who Needs a Statutory Audit?

• Private and Public Limited Companies

• Section 8 (non-profit) Companies

• LLPs and Partnerships (if turnover exceeds prescribed limits)

• Companies with foreign investments

• Entities requiring audit under other laws or funding covenants