Statutory Audit

Statutory Audit is a legally mandated audit of a company's financial records under the Companies Act, 2013. It involves examining the Balance Sheet, P&L Account, Cash Flow Statement, and ensuring compliance with accounting standards.

All companies registered under the Companies Act, 2013 must undergo a Statutory Audit every financial year, regardless of turnover or size. This includes private limited, public limited, and one-person companies.

Statutory Audit is mandated under the Companies Act for all companies. Tax Audit (u/s 44AB) is required under the Income Tax Act when turnover exceeds ₹75 crore. Both audits are different but can be conducted together.

The Statutory Audit must be completed within 6 months of the end of the financial year (by September 30). The auditor's report must be submitted to the company's Board before the AGM.

Key documents include Trial Balance, Ledger, Bank Statements, Invoices, Fixed Asset Register, Debtors/Creditors list, Loan agreements, and previous year's audit report.

Yes, we provide complete assistance with ROC annual filing including AOC-4 (Financial Statements) and MGT-7 (Annual Return) after completion of the statutory audit.

The first auditor of a company is appointed by the Board within 30 days of incorporation. Subsequent auditors are appointed at the Annual General Meeting (AGM) and hold office for 5 years (individual) or 10 years (firm). The auditor submits their report to the members.

Internal Audit is a voluntary or board-mandated review of internal controls and processes conducted by internal or external auditors. Statutory Audit is a legally mandated audit of financial statements under the Companies Act, conducted by a qualified CA appointed by shareholders.

A Statutory Auditor must be a Chartered Accountant (CA) holding a valid Certificate of Practice from ICAI. The auditing firm must comply with peer review requirements and have the necessary infrastructure and team to conduct the audit as per Standards on Auditing (SAs).

The Auditor's Report includes the opinion on true and fair view of financial statements, compliance with accounting standards, reporting on internal financial controls, observations on qualifications/adverse matters, and replies to management representations. It forms part of the Annual Report.