• A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records.
• The term statutory denotes that the audit is required by statute.
• Being subject to a statutory audit is not an inherent sign of wrong doing.
• If inaccuracies are found, appropriate consequences may apply.
• Firms that are subject to audits include public companies, banks, brokerage and investment firms, and insurance companies.
• The statutory audit must be done before the AGM of the company is conducted. The statutory auditor needs to submit the audit report to the board before the conduct of AGM. The audit report should be attached with the company’s financial statements and filed with the ROC.
A statutory audit is an examination of a company’s financial records and statements by an independent auditor to ensure that they are accurate, complete, and comply with relevant laws and regulations. The term “statutory” indicates that the audit is required by law or statute. The primary objective of a statutory audit is to provide assurance to stakeholders, such as shareholders, creditors, and regulators, regarding the reliability and integrity of the financial information presented by the company.
We, Singh Suri & Company, assesses the company’s financial statements, internal controls, accounting policies, and adherence to accounting standards. We examines the company’s compliance with laws and regulations governing financial reporting, taxation, and other relevant areas. The audit process typically involves gathering evidence, performing analytical procedures, testing internal controls, and verifying transactions.
In India, the regulatory requirements for statutory audits are primarily governed by the Companies Act, 2013, and the rules and regulations issued by regulatory bodies such as the Institute of Chartered Accountants of India (ICAI) and the Securities and Exchange Board of India (SEBI). Here are the key regulatory requirements for statutory audits in India:
1. Companies Act, 2013: Under the Companies Act, 2013, certain types of companies are required to appoint statutory auditors and conduct annual statutory audits. These include:
2. Institute of Chartered Accountants of India (ICAI): The ICAI is the regulatory body for chartered accountants in India. It issues auditing standards and guidelines that auditors must follow when conducting statutory audits. These standards ensure consistency, quality, and compliance with relevant laws and regulations.
3. Securities and Exchange Board of India (SEBI): SEBI regulates the securities market in India and imposes specific requirements on listed companies regarding financial reporting and disclosure. SEBI mandates that listed companies must appoint statutory auditors and conduct annual audits in compliance with SEBI regulations and accounting standards
4. Taxation Laws: Besides regulatory requirements under company law, statutory audits are also essential for tax compliance purposes. Income tax laws in India require businesses to maintain accurate financial records and submit audited financial statements to comply with tax regulations.
Overall, the regulatory framework for statutory audits in India is designed to promote transparency, accountability, and integrity in financial reporting, thereby safeguarding the interests of shareholders, investors, creditors, and other stakeholders in the Indian corporate sector.
Singh Suri & Company, Chartered Accountants was established in 2009. The Firm has emerged as an Accounting, Tax, Audit & Business Management Consultancy firm providing wide range of services to clients in India and Abroad.
Head Office : E-1566, Sector-1, Tigri, Dr.Ambedkar Nagar, New Delhi-110080
Branch Office : Unit No. 2417, 4th Floor, Tower 2, Express Trade Towers 2, B-36, Sector-132, Noida - 201301 (U.P)
Copyright © Singh Suri & Company 2024. All rights reserved.
Designed and Developer by Easy Solutions 360.