STATUTORY AUDIT

A statutory audit is a legally mandated verification of the quality of the financial statements and documents of a corporation or government. A statutory audit is intended to determine whether an entity offers a fair and correct portrayal of its financial status by reviewing details such as bank statements, accounting reports and financial transactions. Company is regulated under the Companies Act 2013. This act requires that each corporation that is listed under the Companies Act be audited of its accounts. Therefore an audit would be regarded as a statutory audit performed by such a corporation that is regulated by company law.

 

Frequently Asked Questions​

An audit is a study of financial reports, documents and statements and providing an opinion on whether or not financial records are prepared in compliance with the law by which the audit is performed. If a regulation or legislation controls this audit, it is classified under statutory audit. To clarify, a corporation is regulated by the Companies Act 2013. This act allows each company licensed under the Companies Act to have its accounts audited by a Chartered Accountant who practices. Therefore an audit would be regarded as a statutory audit performed by such a corporation that is regulated by company law. When performing an audit, all rules set by the Companies Act and the widely agreed auditing standards should be adhered to. The required accounting principles should also be adhered to. An auditor should be an independent specialist who should have appropriate law expert expertise. Furthermore, the opinion expressed in the legislative audit should be unbiased and free from uncertainty. When the statutory audit is to be performed in compliance with the statute, it must be performed according to the audit framework established by that legislation.

Statutory audit is a mandatory audit for all businesses as the name suggests. Any organization that is registered as a private limited company or a public limited company under the Companies Act has to audit its account books every year. This kind of audit isn't conditional, it depends on the type of agency.

The statutory audit scope means the activities to be performed when an audit is being carried out. It can also be considered a statutory auditor's duties.
The different steps were taken during the course of a legislative audit follow:

  • Identify and review all the overall aspects of a company's financial statements that require auditing.
  • Auditors ought to ascertain the authenticity, adequacy, and reliability of the information and source data. To this end the auditor may review the accounting and internal control processes.
  • Auditors may assess that the disclosure in the financial statements of the total relevant details was made in compliance with the legislative and accounting requirements.
  • A systematic study and review of a method of internal control and accounting.
  • Verification of accounting transactions and balances by search, inquiry and verification tests required.
  • Financial statements are contrasted to summaries of transactions and activities reported in the accounts underlying them.
  • Assessing the accuracy of the accounting policies adopted as the management prepares the financial statements and also sufficient disclosure to the effect.


However, a statutory auditor can not be held accountable for conducting duties outside its audit scope. Also, if the audit scope restriction has an effect on his unqualified opinion,
he should state the same in his report as a qualified or disclaimer opinion.

An audit that the legislation (law) needs is known as a Legislative audit. Tax Audit is an audit that is made mandatory under the Income Tax Act if the assessees' turnover exceeds the prescribed cap. Statutory auditing is carried out by professional auditors, while a qualified Chartered Accountant performs the tax audit.

  • Statutory audit made obligatory by-law.
  • The Law also defines its purpose.
  • The Companies Act of 1956 set down requirements for a statutory auditor.
  • Similarly the statute has set down the statutory auditor's powers, duties and liabilities.

Section 44AB does not state that the tax audit is to be carried out only by the statutory auditor appointed under the Companies Act. Hence the tax audit may be performed in practice either by the statutory auditor or by some other CA.

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Our foremost priority is to provide Instant Support and are always very particular on adherence of timely delivery so that you don’t miss out on deadline. We have worked with some most time strict clients and we have never missed our target. Our one thumb rule says that “If we miss a deadline we are out”. Accounts and Finance function need always alert eagle eye approach!

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We at AVS & Associates only recruit experienced, skilled professionals who have proven expertise in their field. With a diverse Team of Chartered Accountants, Company Secretaries, Lawyers, and various other consultants on board, we offer end to end financial and legal service under one roof saving time and energy and bring synergy effect between various functions.

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Having over 20+ years experience in the leadership team ensure we maintain highest ethical standards and never go out of trust with you. We always believe in long term relationship with our clients hence integrity is something we value the most. We ensure transparency in communication, service and cost. Our specialized experts helps in maintaining high quality.

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SAM GETSUGA
SAM GETSUGA
2020-09-06
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AVS and associates is extremely professional. They take care of all The things abiding by law and integrity whether it’s a tax management or company registration. They have registered a company and took care of the taxes without me breaking a sweat, they took care of everything proactively. I’m extremely satisfied and would recommend to anyone and everyone.
Kavita Sharma
Kavita Sharma
2020-09-02
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AVS and associates is a very professional team. They handle all things abiding by law and takes out your burden of tax management , assets and all very very precisely up to the point. It’s great working with the team.
Laxmi Kant Thakur
Laxmi Kant Thakur
2020-08-28
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Chrishans Media
Chrishans Media
2020-03-03
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Hitesh Gurditta
Hitesh Gurditta
2020-03-01
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Anish kumar
Anish kumar
2020-02-29
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chiranjibi shah
chiranjibi shah
2020-02-29
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A wonderful experience with the team for the easy way out solutions of taxation and related matters...Thanks
Sanjay Thakur
Sanjay Thakur
2020-02-29
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Best place to work....Thanks Binay Sir...
Sarbendra Yadav
Sarbendra Yadav
2020-02-28
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RAVIRANJAN KUMAR
RAVIRANJAN KUMAR
2020-02-28
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DR V K Arora
DR V K Arora
2020-09-06
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AVS & Associates is a reliable CA firm of Delhi NCR. My company Management Associates Private Limited is taking their services from last ten years. Shri. V K Agrawal of AVS & Associates is knowledgeable, friendly and honest person.
Andrew Samta
Andrew Samta
2020-09-02
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had a nice experience with AVS. was in a urgent need of some income tax related docs and these guys helped out in really quick time. thanks, and would recommend anyone planning to avail their services....
chiranjibi shah
chiranjibi shah
2020-02-29
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A wonderful experience with the team for the easy way out solutions of taxation and related matters...Thanks
Amitabh Kulshreshtha
Amitabh Kulshreshtha
2020-09-02
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I appreciate the fastest way of services by AVS. Till now we got registered around 6 group companies,(Limited, Private Limited and LLP). Their Teams approach to deal with us was something I liked most. Special mention to Mr. Rahul and Ms. Neha. Guys, frankly speaking initially i was in doubt whether to trust these people or not? but once spoke and saw the way they handled my companies formation work, they ended up forming our all group companies and now handling the regular Accounting, Taxation, GST etc... If you are searching for a CA for all your needs, i suggest you may pick these guys and can assign one task before you make any opinions. BTW, we are availing their services since last 3 years. Thanks!
Kavita Sharma
Kavita Sharma
2020-09-02
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AVS and associates is a very professional team. They handle all things abiding by law and takes out your burden of tax management , assets and all very very precisely up to the point. It’s great working with the team.
Saurabh Verma
Saurabh Verma
2020-02-29
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I used their services for capital gain calculation and on many other factors to sell my flat in Noida while I'm here in Australia. Mr Vishnu is the man you need. Very professional, prompt replies and went an extra mile to do the job. Highly recommended.
Raj Malhotra
Raj Malhotra
2020-02-29
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Some highly talented group of indivisuals who do really care for customer satisfaction
Thefairyforce
Thefairyforce
2020-02-29
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I'm very satisfied with the service here. They have a very good behavior towards us and they listen to our problems closely and give the best solution. If you're starting up or running a business already I would recommend you to come here they are awesome!
Arpit Mathur
Arpit Mathur
2020-02-29
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There is environment and relation of every employee is very good. Management and discipline is very tough.
Singh Robin
Singh Robin
2020-02-29
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Highly Professional team. Really appreciate the way team coordinated & made everything easy for me. Thank you & wish you all the very best. Cheers.
ezam zaidi
ezam zaidi
2020-02-29
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Have been very cooperative. Proactive with every step. The team was patient and they made sure the entire process flow was smooth.
Manish Sharma
Manish Sharma
2020-02-29
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I got my company registered with avs. I am happy with their services and it was done quickly and in cost effective manner. Recommend anyone want to avail their services.
Pranav Tripathi
Pranav Tripathi
2020-02-29
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Vishnu ji has been with our company for the past 10 years with many different companies . Soft spoken, humble and a thorough professional.
Kishore Kundan
Kishore Kundan
2020-02-29
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Very fast service with cost effective..Agarwal sir behavior is very supportive.. I will suggest all to take services from AVS..
Sushil Kumar Raj
Sushil Kumar Raj
2020-02-29
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I would say they are the best for new company and start ups, the way they deal with person who do not have any idea about setting up of new company is remarkable....