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Statutory Audit

Statutory Audit

A company needs to formulate a financial statement for the 31st of March every year. Financial statement as such gives an accurate value of the company’s state of affairs and need to comply with the standard of the accounting as the central government notified under the Companies Act section 133. The statutory financial statement should be formulated in the form and format as prescribed for a specific company type.  For Instance, schedule VI is a suitable form, a private limited company needs.

Key Takeaways Statutory Audit

  • A statutory audit helps to keep track and review the company’s accuracy or financial records or statements of the government.
  • A statutory audit is an inspection of records held by a government entity, organization, individual, or business, which comprises of the financial records analysis or other audit areas.
  • The financial auditing purpose is often to identify if funds were managed accurately and also ensures filings and records to be accurate.
  • Companies that are subject to statutory audits comprises of public companies, brokerage, banks, insurance companies, and investment firms.

Statutory Audit Applicability

  • For Public Company/Private Company: It is mandatory for private/public companies irrespective of profits or Turnover, etc. If the firm is experiencing loss then statutory audit service is required.
  • For LLP Company: Statutory audit is applicable in LLP if the contribution exceeds Rs. 25 Lakhs and turnover in any financial year exceed Rs. 40 Lakhs.

Who Can Be Appointed as a Statutory Auditor?

A practicing Chartered accountant firm or chartered accountant or LLP can only be appointed as a statutory auditor of a company.

How ASC can help?

At ASC an elite team of qualified auditors is designated to do such audits. Our Statutory Audit Services provides reasonable assurance to all the stakeholders that the subject matter is free from material misstatement and present a True and Fair view, which helps effectively evaluate and improve the effectiveness of risk management, control, and governance process over the subject matter.

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