Synopsis of Statutory Audit
A statutory audit is a legally required accuracy test of the economic statements, including documents of a business enterprise and government. It is supposed to distinguish the condition of an agency that offers robust and perfect illustration concerning its monetary function via assessing information, like financial institution balances, monetary transactions, and accounting reports.
Is Statutory Audit important and who all can perform it?
Yes, it is.
According to the companies’ Act 2013 almost all government and private entities are supposed to adhere these acts irrespective of their sales turnover to carry out a statutory audit of monetary documents.
As per the Company’s Act 2013, only a Chartered Accountant, CA Firm or an LLP (Limited Liability Partnership) Firm can carry out this statutory audit practice in India.
Statutory Audit Process
As soon as the company is registered, the statutory audit process start. This process depends completely on the nature of the business.
A professional auditor will scrutinize the company thoroughly, enabling them to clear out all the business-related doubts. This include background of the company, production process, stocks, marketing services, financial statements and many more.