Statutory Audit

About Statutory Audit

The firms that come under the Companies Act, 2013 usually have the necessity for conducting a statutory audit each year. This statutory audit is done by an independent chartered accountant to ensure that the financial statements of the company give a true and fair view. Our organisation offers the best possible statutory audit services which will assist you in complying with all the necessary laws. Whether your firm is new or old, we can assist you in getting the perfect audit done without any problem.

What Is a Statutory Audit?

A statutory audit involves the inspection of financial records of a business organisation by a competent chartered accountant. This type of audit is carried out with an aim of ascertaining whether the business organisation is adhering to the Companies Act of 2013. The records to be audited include the balance sheet, the profit and loss account, the cash flow statement, and all the records of accounts.

Why Is a Statutory Audit Important?

A statutory audit assists business organisations in adhering to the law and enhances the accuracy of financial records. It boosts the trust of stakeholders such as shareholders, banks, investors, and regulatory bodies through the confirmation of financial accuracy in compliance with the relevant legislation. The process also helps in detecting accounting mistakes and enhancing sound financial decisions.

Who Needs a Statutory Audit?

A statutory audit is compulsory for companies registered under the Companies Act, 2013. The necessity of a statutory audit mainly depends upon the status of the company, i.e., whether it is a Private Limited Company, public limited company, OPC, or Section 8 company. A statutory audit is not dependent on the turnover, profit, or business activity of the organisation.

Statutory Audit Applicability in India

Business owners think that the statutory audit is needed only by big companies; however, this is an incorrect notion. In India, a statutory audit is compulsory for every company registered under the Companies Act, 2013, irrespective of its business activity or turnover. A statutory audit is compulsory even if there is zero business transaction of any kind done during the accounting year.

Statutory Audit Process

Statutory auditing is carried out in a systematic way aimed at verifying the correctness of accounting records and their compliance with law. Every step in this process contributes to collecting necessary audit evidence before drafting the final audit report.

Keep the bullets but improve them:

• Planning the audit and understanding the business.
• Reviewing financial records and supporting documents.
• Verifying transactions and account balances.
• Checking compliance with accounting standards and legal requirements.
• Preparing and issuing the statutory audit report.

Documents Required for Statutory Audit

It becomes easier for one to perform the audit without any delays through preparation of all the necessary papers. Some of the common papers that are needed include:

• Bank statements and bank reconciliation for the full year.
• Sales and purchase invoices.
• Financial accounts and trial balance.
• Fixed asset records, if any.
• Board meeting minutes and past year's audit report.

Any shortage of documents will mean a delay in the audit process and also limit the verification of information by the auditor. It is important to keep proper books of accounts for the whole year.

Benefits of Choosing Professional Statutory Audit Services

A professional statutory audit service provides much more than mere regulatory compliance. The experienced auditor can provide you with financial correctness, risk identification, improved internal control, and compliance with all relevant legal requirements.

• Ensures compliance with statutory requirements.
• Identifies accounting errors and financial risks.
• Improves the accuracy of financial statements.
• Builds trust among investors, banks, and stakeholders.
• Supports better financial planning and decision-making.

Difference Between Statutory Audit and Tax Audit

These two audits often get mixed up, but they are actually quite different in nature, one applies to every company, the other depends on turnover.

Common Challenges During Statutory Audit

Most organisations experience unnecessary delays in the statutory audit process due to lack of adequate documentation. The practice of keeping up-to-date books of account will help in making the statutory audit process easier.

• Missing invoices or supporting documents.
• Incomplete or inaccurate accounting records.
• Delayed preparation of financial statements.
• Unreconciled bank accounts.
• Books of accounts not updated regularly.

How Does CA Surya Prakash Associates Conduct Statutory Audits?

As per our policy at CA Surya Prakash Associates, our process for conducting an audit is very systematic and transparent as per the requirements of your organisation. The chartered accountants analyse the accounting documents, confirm statutory compliances, and give appropriate suggestions. You will be fully updated during the entire process of auditing.

Why Choose CA Surya Prakash Associates?

It is critical for the proper financial reporting and adherence to statutory norms that the appropriate audit firm should be chosen. The team at CA Surya Prakash Associates blends their professional experience with their expertise in different sectors along with their client-centric approach.

• Experienced Chartered Accountants.
• Accurate and transparent audit process.
• Timely completion of statutory audits.
• Industry-specific audit expertise.
• Clear communication throughout the engagement.
• Ongoing support even after the audit is completed.

Get Professional Statutory Audit Services

A statutory audit will enable your business to be compliant with laws, ensure financial transparency, and gain the confidence of banks, investors, and regulators. At CA Surya Prakash Associates, you will get statutory audit assistance that will help you become compliant and accurate with your accounting needs. You can call us at +91-9506666255 to set up an appointment.