Statutory Audit

Statutory Audit

A Statutory Audit involves a comprehensive review of a company’s financial statements to ensure they comply with legal and regulatory requirements.

  • Ensure the accuracy and reliability of financial statements.
  • Confirm compliance with tax laws and regulations.
  • Provide assurance to stakeholders that the company’s financial position is accurately reported.
  • Identify areas for improving internal controls, financial processes, and risk management.

Overview of Statutory Audit

A Statutory Audit is a legally mandated audit of a company’s financial statements to ensure accuracy, transparency, and compliance with applicable laws and regulations. It is conducted by an independent auditor and is required under various statutes such as the Companies Act, Income Tax Act, and other regulatory frameworks depending on the type and size of the entity.

The primary objective of a statutory audit is to provide stakeholders—such as shareholders, creditors, and regulatory bodies—with a fair and true view of the financial position and performance of the business. It helps detect errors, prevent fraud, and improve the overall reliability of financial reporting.

Key Components of Statutory Audit

  1. Financial Statement Review:
    Examination of the balance sheet, profit and loss account, and cash flow statement for accuracy and compliance with accounting standards (GAAP or IFRS).
  2. Transaction Verification:
    Verifying the authenticity and accuracy of financial transactions, including receipts, payments, and other recorded activities.
  3. Internal Control Evaluation:
    Assessing the effectiveness of internal controls to prevent errors, fraud, and misstatements.
  4. Compliance Check:
    Ensuring the company complies with tax laws, corporate governance requirements, and relevant industry regulations.
  5. Systems Testing:
    Testing the company’s financial systems for consistency, reliability, and accuracy in data processing.
  6. Asset and Inventory Verification:
    Verifying the existence and proper recording of assets and inventory.
  7. Audit Report:
    Providing an audit opinion on the financial statements, highlighting discrepancies (if any) and offering recommendations for improvements.

A Statutory Audit ensures transparency, builds trust with stakeholders, and helps identify areas for operational improvement.

Statutory Audit Procedure

We follow a clear and effective procedure for conducting Statutory Audits, ensuring your financials are accurate and compliant. Here’s our approach:

1. Planning & Preparation:

  • Initial meeting to understand your business and audit needs.
  • Tailored audit plan and timeline development.

2. Document Collection & Risk Assessment:

  • Gathering necessary financial documents.
  • Assessing internal controls and potential risks.

3. Audit Testing:

  • Verifying financial transactions and balances.
  • Ensuring compliance with accounting standards and regulations.

4. Financial Statement Review:

  • Analyzing your balance sheet, profit and loss, and cash flow for accuracy and consistency.

5. Audit Report & Opinion:

  • Providing an independent audit opinion on the fairness of your financial statements.
  • Issuing a report with any discrepancies or recommendations.

6. Final Discussion & Follow-Up:

  • Reviewing findings with management.
  • Offering ongoing support for implementing improvements.

Why Choose TaxMyles?

  • Expertise: Experienced auditors with deep industry knowledge.
  • Compliance Focused: Ensuring full regulatory compliance.
  • Transparency: Clear, objective audit results.
  • Timely Delivery: Fast, efficient audits with minimal disruption.
  • Client-Centric: Personalized service and clear communication.

Choose TaxMyles for reliable, efficient, and thorough statutory audits.