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A statutory audit is a required examination that examines the accuracy of a corporation's or governmental entity's financial accounts and paperwork. The primary goal of this audit is to discover whether a company shows a true and exact picture of its financial standing, achieved through the study of details such as bank funds, accounting records, and financial deals.
Objectives of a Statutory Audit
- Spotting Mistakes
Auditors look for any errors in the accounts—whether it's a wrong entry, a missing number, or a simple typing mistake.
- Catching Fraud
They also keep an eye out for anything that looks fishy, like unusual transactions or signs of wrongdoing.
- Finding Hidden Errors
Sometimes mistakes cancel each other out and go unnoticed. Auditors dig in to uncover these kinds of issues too.
- Fixing Accounting Principle Mistakes
If the company has used the wrong accounting method or misunderstood a rule, auditors point it out and help set things right.
In India, statutory audits are governed primarily by the Companies Act, 2013 and conducted according to standards set by the Institute of Chartered Accountants of India (ICAI).
It's an audit you must have by law, conducted by an independent auditor to protect shareholders, creditors, and the public interest.
And if someone wants to understand statutory audits in a more practical way, a lot of students find CA Tushar Makkar’s “Master Blaster of Statutory Audit” course pretty useful.
What else can I help you with?
What is the difference between statutory and non statutory audits?
what is the difference between statutory audit and non statutory audit.
What is the turnover limit for statutory audit?
Statutory audit is mandatory by statue hence it does not have any turnover limit.
Meaning of private audit?
when the audit is not a statutory requirement , but is conducted at the desire of owners , such an audit is private audit . the audit is conducted primarily forr their own interest. At times the private audit may become a requirement under tax laws , if the turnover exceeds a specified limit. private audit is of the following types : 1 audit of sole proprietorship 2 ,, ,, partnership firms 3 ,, ,, individuals accounts 4 ,, ,, institutions not covered by statutory audit
When there is a statutory audit introduction of internal audit is not necessary at all?
false
When there is a Statutory Audit introduction of Internal Audit is not necessary at all.?
false
What are the advantages of statutory auditing?
advantages and disadvantages of non statutory audit
Why statutory audit is requirements?
gordo ;))
Is statutory audit is done for proprietorship?
not
What is the difference between statutory audit and non -statutory audit?
Statutory audits are reviews of a business or governments financial records as required by law. Non-statutory are audits not required by legal statute but needed because of some other reason. A non-statutory might be needed if some issue is brought to light such as an irregularity in the way business is being done or perhaps in the case where some type of intentional actions such as an incompetent accountant or even embezzlement was discovered, to find out the extent of the issue.
What are the advantages of non statutory audits?
advantages and disadvantages of non statutory audit
What is Final Audit?
Final audit is conducted by the statutory auditors after the close of the financial period with a view to prepare the financial statements & audit report to be presented to the Board of Directors and to be filed with statutory authorities.
Checklist for statutory audit of banks?
Bakwash
