STATUTORY AUDIT SERVICES
A statutory audit is a legally required review of the accuracy of a company’s financial statements and records. The purpose of a statutory audit is the same as the purpose of any other type of audit: to determine whether an organization is providing a fair and accurate representation of its financial position by examining information. It is often a formality designed to help prevent such activities, such as the misappropriation of funds, by ensuring regular examination of various records by a competent third party. The purpose of the statutory audit is to ensure the fairness and credibility of accounting records.
Benefits are offered by a statutory audit:
- It assures the management that their duties in statutory performed perfectly.
- Statutory audit improves the reliability of the published financial statement
- It provides internal control’s efficiency.
- The statutory audit ensures the management that they must abide by non-statutory requirement say Corporate Governance requirement.
- When the internal controls are poor in a company, the statutory auditor will give the suggestion for the company’s improvement which will help the company from risk and improves the company’s performance.
Statutory Audit Requirement
Company
All companies (Private Limited Company, One Person Company, Limited Company, Section 8 Company, Nidhi Company, Producer Company), irrespective of nature of business and sales turnover must appoint a Statutory Auditor.
Limited Liability Partnership
All Limited Liability Partnership (LLP) must have its accounts audited if the annual sales turnover exceeds Rs.40 lakhs or if capital contribution exceeds Rs.25 lakhs, irrespective of the nature of the business.
Proprietorship
Proprietorship firm must complete a tax audit by a Chartered Accountant if the annual sales turnover exceeds Rs.1 crore in terms of business or if annual gross receipts exceed Rs.25 lakhs in terms of a Profession.
Steps generally we follow:
- Getting Appointment Letter & Board Resolution Copy
- Getting NOC from the Previous Auditor
- Filing our no disqualification status to the company
- Filing of Form 23B to ROC
- Getting a Letter of Engagement
- Assessment of Internal Control
- Formulation of Internal Audit Program Action Plan and Calendar
- Conduction Audit as per IGAAP Companies Act ICAI Accounting Standards and Auditing Standards
- Forming an opinion on a financial statement prepared by the company
- Reporting to Shareholders
- Attending AGM
How we do? Statutory Audit Execution General Process:
Our firm is well equipped and well experienced in Statutory Audit and we perform it as per the Audit Program designed for the company after assessment of their Internal Control.
The time duration for completing a statutory audit would depend on the audit objectives and scope.
