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Audited
What is a Statutory Audit?
A statutory is another name of a financial audit. It is essentially an audit of the final statements of a company, i.e. the profit and loss and the balance sheet. The purpose of a statutory audit is to ensure that these accounts of the company represent a fair and accurate picture of the company’s current financial position on the date of the balance sheet.
It is important that we understand the need for a statutory audit to be carried out. In case of a company, the owners of the company are the shareholders. However, they do not run or manage the day to day affairs of the company. This is done by the board of directors and the management of the company.
So the shareholders need assurance that the accounts maintained and published by the company are authentic and genuine. This is why the law requires that an independent auditor to conduct a statutory audit.
Process of Statutory Audit
Following are the steps generally followed in conducting Statutory Audit of a Company
1. Getting Appointment Letter and copy of Board Resolution.
2. Getting NOC From Previous Auditor.
3. Giving our No Disqualification Status and consent to the company.
4. Filing of Form ADT-1 to Registrar of Company.
5. Getting Letter of Engagement
6. Assessment of Internal Control.
7. Formulation of Audit Programme, Action Plan and Calendar.
8. Forming an opinion on the financial statement prepared by the company.
9. Reporting to the Shareholder.
10. Attending an Annual General Meeting of the company
Basic Documents Required for Statutory Audit
• Invoices of Purchases and Sales During the year.
• Invoices of Expense incurred during the year.
• Credit Card Statement if expenses are incurred by Directors on behalf of Company.
• Bank Statement from 1st April to 31st March for all Bank Accounts in the name of company.
• Copy of GST returns filed (If Any)
• Copy of TDS Challans Deposited (If Any)
• Copy of TDS Returns filed (If Any)
• Documentary Evidences regarding appointment/reappointment of an Auditor.
• Last Years copy of Audited Balance sheet, profit & loss account , schedules, notes on accounts along with 3CA/3CB, 3CD & Audit Report
• All statutory registers
• List of related party transactions if any
• Accounting data
• Stock register if any.
19,999/-
All Inclusive Fees
| (Upto 50Lakh Turnover) |
29,999/-
All Inclusive Fees
| (Upto 100 Lakh Turnover) |
39,999/-
All Inclusive Fees
| (Upto 300 Lakh Turnover) |
| Customized package available for more than 300 Lakh Turnover. |
Benefits of Statutory Audit
Obviously this is one of the main reasons to conduct an audit: to meet the statutory requirements and regulations in your industry. An audit provides complete peace of mind for business owners and shareholders that the organization is 100% compliant with all of its current statutory obligations
A thorough, in-depth audit takes an impartial look at your organisation’s internal systems and controls. This means it’s an ideal opportunity for the auditing experts to suggest improvements that can make your business more efficient
An audit provides independent verification that the financial statements are a true and fair representation of the entity’s current situation. This provides invaluable credibility and confidence to your organisation’s customers/clients, stakeholders, investors or lenders and even potential buyers
Workplace fraud can occur for years without being detected and can be so substantial that some businesses never recover financially or repair their reputations. An audit can be an effective tool for identifying fraud and opportunities to commit fraud
In a way, the tax authorities are dependent on the auditors because the profit calculated by the auditors is considered as the final one and based on this calculated profit the tax authorities assess the taxes of the company
It’s a detailed process and can result in certain types of income, expenditure, assets and liabilities being scrutinized. This critical examination, coupled with the auditor’s financial expertise, can then be used by business owners for better financial planning, budgeting and financial decision-making for the future
Shares of a company are movable property and thus can be transferred like any other property. A public company can freely transfer its shares, but there are some restrictions.
The goods and services tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted.
