Statutory Audit

Companies Act 2013 has made it compulsory for all companies to go for statutory audits. This is done to ensure that the financial reports of the companies are in order. So, if you are willing to get your statutory audit done by one of the most reliable accounting firms in India, then you may reach out to BC Shetty & Co and avail of their services.

Statutory Audit is a type of audit which is mandated by a Statute or Law to ensure true and fair view of the book of accounts. Statutory Audit is required to assess whether company is compliant with applicable laws, rules and standards and its financial statements reflect true and fair view of financial position of the company. Statutory audits must be completed by qualified Chartered Accountants who are independent of the Business.

statutory-audit

Statutory Audit Applicability

  1. 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.
  2. 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 business.

Introduction

A statutory audit is an audit for reviewing the accuracy of a company's finances. The purpose of a statutory audit is to check whether a company is offering an accurate representation of its current financial position. This is done by examining the bookkeeping records and financial transactions of the organisations.

Various companies, banks, NGOs and government agencies go for statutory audits from time to time. The statutory audit is conducted by a chartered accountants in India. The firm will analyse your financial data and provide you with insights into the same.

Purpose and Benefits of Statutory Audit

Objectives of statutory audit

Statutory audit is conducted to ensure that all the financial statements of a particular organisation are in order. This is mandatory for Companies that are incorporated under Companies Act 2013.

Benefits of statutory audit for Businesses and stakeholders

  1. Statutory audit services can enhance the credibility of an organisation's financial statements.
  2. By going for a regular statutory audit and GST audit, you will be able to remain in compliance with the legal requirements of the country.
  3. You can identify the gaps and weaknesses in your financing structure.
  4. You will be able to gain access to funding opportunities.
  5. You can make well-informed decisions for your business.

Our Complete Statutory Audit Process

  1. Pre-engagement planning: Our statutory audit firm will start the statutory audit process with pre-engagement planning. Here, we will understand the exact nature of your business and assess the risks associated with various entities within your business. You can also contact us for tax audit services.
  2. Gathering of financial records and documentation: Next, we will obtain all your financial data including bank statements, invoices, and much more. This will provide us with clear insight into your finances.
  3. Conducting audit procedures: Once we have collected the data, we will perform the audit procedure. We will collect all the required evidence to support your financial statement.
  4. Communication with management and board of directors: Next we will make communications with the management and the board of directors. This is mainly done to discuss the audit findings.
  5. Fraud detection and reporting: During the statutory audit of companies, we will assess the risk of fraud and take different steps to identify the financial statements which might not comply with the rules and regulations of the country.
  6. Presentation of audit observation report along with recommendations: We will prepare the audit observation report in a minute way. If we identify any kind of fraud, it is going to be reported to the respective authorities.
  7. Audit of internal control financial reporting: We will provide you with the audit of internal control financial reports regularly along with necessary recommendations. This will help you to have a clear understanding of the current financial state of the business. We can also help you with itr filing online if required.

Why Choose BC Shetty & Co For Statutory Audit Services?

At BC Shetty & Co, we have a highly experienced team of professionals who will deliver appropriate statutory audit services to our clients. We will carefully understand your business objective and offer you the best statutory audit services that will help in the growth and prosperity of your business

We will also help you out in achieving your business goals and make sure that all of your company's financial statements are in order. All our services are of top-notch quality. We are also associated with MGI Worldwide, one of the oldest networks of independent tax, audit, and accounting firms. You can also contact us for statutory audits of banks, NGOs, etc and gst registration services.

FAQ

All companies irrespective of the nature of their business and their business turnover should go for a statutory audit.

The limit of statutory audits is different for different companies depending on the business turnover. In India, the statutory audit limit is determined by the Companies Act, 2013.

A tax audit is an audit conducted to verify the compliance with Income Tax Act 1962 while a statutory audit is the examination of the financial data of a company as per Companies Act 2013. You can read more about Tax audit here