What is a Statutory Audit?
A statutory audit in India is a legally required examination of a company's financial records and statements, mandated by the Companies Act, 2013 for all registered companies in India.
Why Statutory Audits Matter
Statutory audits serve as a critical financial checkpoint, ensuring that your company's financial statements provide a true and fair view of its financial position. These audits are not just regulatory requirements but essential business practices that:
Enhance Financial Transparency
Provide stakeholders with reliable and independently verified financial information.
Build Investor Confidence
Increase credibility with investors, lenders, and other financial stakeholders.
Mitigate Legal Risks
Ensure compliance with Indian regulatory requirements and reduce the risk of penalties.
Our Statutory Audit Expertise
Comprehensive statutory audit services designed to ensure financial accuracy, regulatory compliance, and business transparency.
Financial Statement Audit
Comprehensive examination of financial statements in accordance with Indian Accounting Standards (Ind AS).
- Balance sheet verification
- Profit & loss statement review
- Cash flow analysis
Compliance Review
Assessment of compliance with Companies Act, 2013, and other relevant regulations governing Indian businesses.
- Companies Act adherence
- Regulatory compliance checks
- Statutory reporting requirements
Audit Report Preparation
Preparation of detailed audit reports that meet all regulatory requirements and professional standards.
- CARO 2020 compliance
- Qualified/unqualified opinions
- Management representation letters
Internal Control Assessment
Evaluation of internal control systems with recommendations for improvements to enhance financial reporting integrity.
- Control environment evaluation
- Risk assessment procedures
- Monitoring activities review
Board Report Assistance
Expert assistance in preparing comprehensive board reports that meet regulatory requirements and best practices.
- Directors' report drafting
- CSR reporting assistance
- Financial summary preparation
Statutory Audit Process
Engagement & Planning
We begin with understanding your business, defining audit scope, and creating a detailed audit plan.
Testing & Verification
We examine financial records, test internal controls, and verify financial statement accuracy.
Statutory Reporting
We prepare comprehensive reports compliant with Companies Act requirements and relevant regulations.
Risk Assessment
We identify financial reporting risks and determine materiality levels for effective audit focus.
Follow-Up & Compliance
We ensure implementation of recommendations and continued compliance with regulatory requirements.
Engagement & Planning
We begin with understanding your business, defining audit scope, and creating a detailed audit plan.
Risk Assessment
We identify financial reporting risks and determine materiality levels for effective audit focus.
Testing & Verification
We examine financial records, test internal controls, and verify financial statement accuracy.
Statutory Reporting
We prepare comprehensive reports compliant with Companies Act requirements and relevant regulations.
Follow-Up & Compliance
We ensure implementation of recommendations and continued compliance with regulatory requirements.
Benefits of Our Statutory Audit Services
Regulatory Compliance
Ensure full compliance with Companies Act, 2013 and other statutory requirements to avoid penalties and legal issues.
Enhanced Credibility
Build trust with shareholders, investors, lenders, and other stakeholders through verified financial statements.
Improved Controls
Identify weaknesses in internal controls and receive expert recommendations for operational improvements.
Access to Financing
Facilitate loan approvals and investment opportunities with audited financial statements that instill confidence.
Stakeholder Confidence
Enhance relationships with all stakeholders through transparent and accurate financial reporting.
Fraud Detection
Identify potential fraud, errors, or irregularities in financial records through thorough examination.
Our Statutory Audit By The Numbers
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Common Statutory Audit Questions
Find answers to the most common questions about statutory auditing in India.
Under the Companies Act, 2013, all companies registered in India are required to have their accounts audited annually by a statutory auditor. This includes:
- Public limited companies (regardless of size)
- Private limited companies
- One Person Companies (OPCs)
- Limited Liability Partnerships (LLPs) meeting certain thresholds
There are certain turnover and capital thresholds for exemptions for small companies, but most businesses will fall under the statutory audit requirement.
The statutory audit timeline in India follows the financial year (April 1 to March 31):
| Company Type | Financial Year End | Audit Completion | AGM Deadline |
|---|---|---|---|
| Listed Companies | March 31 | Within 60 days | By September 30 |
| Unlisted Public Companies | March 31 | Before AGM | By September 30 |
| Private Limited Companies | March 31 | Before AGM | By September 30 |
It's advisable to begin the audit process promptly after the financial year-end to ensure timely completion and filing of all required documents.
Financial Records
- Trial balance and general ledger
- Bank statements and reconciliations
- Fixed asset register
- Inventory records
- Accounts receivable and payable aging
- Tax returns and computations
Legal & Corporate Documents
- Memorandum & Articles of Association
- Board/shareholder meeting minutes
- Material contracts and agreements
- Previous audit reports
- Statutory registers
- Loan agreements and lease contracts
Statutory audits in India are governed by several regulatory frameworks:
Companies Act, 2013
The primary legislation that mandates statutory audits and defines the auditor's responsibilities, appointment process, and reporting requirements.
Standards on Auditing (SAs)
Issued by the Institute of Chartered Accountants of India (ICAI), these standards establish the principles and procedures for audits.
CARO 2020
Companies (Auditor's Report) Order, 2020 specifies additional matters that auditors must include in their reports.
Indian Accounting Standards (Ind AS)
Converged with International Financial Reporting Standards (IFRS), these standards govern financial statement preparation.
SEBI Regulations
Listed companies must also comply with Securities and Exchange Board of India's disclosure and reporting requirements.
Have more questions about statutory audits?
Our audit experts are ready to provide guidance tailored to your specific industry and company size
Schedule a ConsultationOur Industry Experience
We bring deep expertise across diverse industries to deliver tailored statutory audit solutions for Indian companies.
Financial Services
Specialized audits for banks, NBFCs, insurance companies, and other financial institutions focusing on RBI and IRDA compliance.
IT & ITES
Comprehensive statutory audits addressing sector-specific accounting practices, revenue recognition, and international transactions.
Manufacturing
Specialized audits for inventory valuation, cost accounting, GST compliance, and manufacturing process evaluations.
Retail & E-commerce
Tailored audits focusing on inventory management, revenue recognition, online transactions, and marketplace operations.
Real Estate & Construction
Specialized audits addressing percentage completion method, land valuations, RERA compliance, and project accounting.
Logistics & Transportation
Comprehensive audits addressing fleet accounting, cross-border transactions, import-export documentation, and GST complexities.
Ready to Ensure Statutory Compliance?
Let our expert team help your business meet all statutory audit requirements with precision and professionalism.