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.

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 /Steps

01

Audit Planning

Develop an audit plan and timeline.

02

Fieldwork and Testing

Test financial transactions, internal controls, and compliance.

03

Preparation of Financial Statements

Review and prepare statements as per statutory requirements.

04

Audit Reporting

Issue a report on financial statements.

05

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.

Frequently Asked Questions

Statutory audits are typically conducted annually, but the frequency may vary depending on legal requirements and company size.