Statutory Audit

✅ Statutory Audit Services in India – Ensure Legal Compliance & Financial Transparency

Looking for Statutory Audit services in India? Our expert Chartered Accountants help businesses meet all legal and regulatory audit requirements under the Companies Act, Income Tax Act, and other applicable laws. Whether you’re a private limited company, public company, LLP, or trust, statutory audit is a legal necessity to ensure your financial statements reflect true and fair view.

 

📌 What is a Statutory Audit?

A Statutory Audit is a legally mandated audit conducted to determine whether a company provides an accurate and fair representation of its financial position. It is governed by laws such as the Companies Act, 2013, and is applicable to all companies that meet certain criteria such as turnover, capital, or nature of the entity.

The primary goal of a Statutory Audit is to ensure:

  • Compliance with laws and accounting standards.

  • Prevention of fraud and errors.

  • Accuracy and reliability of financial statements.

 

📄 Documents Required for Statutory Audit

To conduct a Statutory Audit, the following documents are typically required:

  • Certificate of Incorporation (COI)

  • Memorandum & Articles of Association (MOA & AOA)

  • Audited Financial Statements of previous years

  • Books of accounts (Cash book, Bank book, Journal, Ledger, etc.)

  • Trial balance

  • Purchase and Sales Register

  • GST Returns & Working

  • TDS Returns & Payment Challans

  • Bank Statements

  • Loan Agreements (if any)

  • Fixed Asset Register

  • Payroll Register and Salary Sheet

  • Depreciation Schedule

  • Board Meeting Minutes

  • Statutory Registers (Shareholding, Directors, etc.)

 

🔄 Statutory Audit Process – Step-by-Step

Here’s a detailed overview of the Statutory Audit process:

1. Understanding Business & Industry

The auditor first understands the client’s business operations, structure, and internal control system.

2. Preliminary Discussions

Engagement letter is issued, audit plan and scope of work are defined.

3. Collection of Financial Data

Client submits all required documents for verification.

4. Verification of Records

Examination of books of accounts, vouchers, invoices, bank statements, and tax returns.

5. Compliance Check

Auditor checks compliance with Companies Act, 2013, Income Tax Act, GST laws, and Accounting Standards (Ind-AS).

6. Internal Controls Testing

Assessment of internal controls to detect risks and frauds.

7. Audit Adjustments

Discussion with the management on audit findings and adjustments required.

8. Preparation of Audit Report

The auditor issues an Audit Report containing observations and certification.

9. Submission of Audit Report

Filing of audit report with ROC (Registrar of Companies), tax authorities, or relevant body.

 

🎯 Scope of Work for Statutory Audit

Our Statutory Audit services include:

  • Examination of financial statements

  • Evaluation of internal control systems

  • Tax audit compliance (where applicable)

  • Reporting of financial irregularities

  • Filing of form AOC-4 and MGT-7

  • Audit of related party transactions

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

  • Auditor’s opinion on true & fair view of accounts

  • Suggestions for improving financial reporting

  • Fraud risk assessment and reporting

  • Assistance in ROC and Income Tax Audit filings

  • Certification for statutory compliances

 

❓ Frequently Asked Questions (FAQs) on Statutory Audit

1. What is the meaning of Statutory Audit?

A Statutory Audit is a government-mandated audit of a company’s financial records to ensure accuracy and legal compliance.

2. Who is required to conduct a Statutory Audit?

All Companies registered under Companies Act, 2013, and certain LLPs, NGOs, and Trusts must undergo statutory audit annually.

3. Is Statutory Audit compulsory for all companies?

Yes, statutory audit is compulsory for all companies, regardless of turnover, including private limited and public limited companies.

4. What is the statutory audit threshold for LLP?

LLPs with turnover exceeding ₹40 lakhs or contribution above ₹25 lakhs must undergo statutory audit.

5. Who can perform a statutory audit?

Only a qualified Chartered Accountant (CA) in practice can conduct a statutory audit.

6. What is the due date for Statutory Audit?

The statutory audit must be completed before 30th September of the assessment year, or as per government notifications.

7. What is the difference between Internal Audit and Statutory Audit?

Internal Audit is a management tool, while Statutory Audit is a legal requirement as per applicable law.

8. Is tax audit the same as statutory audit?

No, Tax Audit is under Income Tax Act, while Statutory Audit is under Companies Act. They may be done together but are distinct.

9. Can one auditor do both tax audit and statutory audit?

Yes, a CA can perform both audits, provided there is no conflict of interest.

10. What is included in a statutory audit report?

It includes auditor’s opinion on the financial statements, compliance status, and any material misstatements or irregularities.

11. What are the penalties for not conducting a statutory audit?

Failure to conduct a statutory audit attracts heavy penalties, disqualification of directors, and other legal consequences.

12. Can a startup or small company skip statutory audit?

No. Even small or startup companies registered under Companies Act need to undergo statutory audit.

13. What is the cost of statutory audit services?

Cost depends on company size, complexity, and scope. Contact us for a custom statutory audit quote.

14. How to appoint a statutory auditor?

The Board of Directors appoints an auditor in the first AGM. The company must inform ROC via Form ADT-1.

15. How long does a statutory audit take?

It can take 1 to 4 weeks, depending on the size and documentation readiness of the company.

 

📞 Contact Us for Professional Statutory Audit Services

Ensure full legal compliance and financial clarity with our Statutory Audit services. Our expert Chartered Accountants deliver detailed audit reports that meet regulatory requirements and instill stakeholder trust.