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Statutory Audit
Ensuring Financial Integrity and Compliance
Statutory Audit
A statutory audit is a legally required check of the accuracy of the financial statements and records of a company or government. A statutory audit is intended to determine if an organization delivers an honest and accurate representation of its financial position by evaluating information, such as bank balances, financial transactions, and accounting records.
Companies Act, 2013
Sections 139 to 147 under chapter X of the Act contain provisions regarding audit and auditors. Section 139 contains that at the first annual general meeting every company shall appoint an inpidual or firm as it auditor who will hold office from the conclusion of that meeting till the conclusion of the sixth annual general meeting. Section 141 contains that a person shall be eligible for appointment as an auditor of a company only if he is a chartered accountant and in case of a firm whereof majority of partners practising in India are qualified for appointment as aforesaid may be appointed by its firm name to be auditor of a company. Section 143 which contains provisionsregarding powers and duties of auditors contains that the statutory auditor shall make a report to the members of the company on the accounts and financial statements examined by him. The main provisions regarding statutory audit are
Main Provisions Regarding Statutory Audit
Access to Books and Information
The auditor has the right to access books of accounts, vouchers, and other records at all times. The auditor can seek information from company officers as deemed necessary.
Reporting Duties (Section 143)
The statutory auditor must submit a report to the members of the company on the examined accounts and financial statements. The report must state whether the financial statements provide a true and fair view of the company’s affairs at the end of the financial year. Any qualifications in the audit report must be clearly stated, along with the reasons for them.
Compliance and Standards
The auditor is required to comply with Auditing Standards to ensure the quality and reliability of the audit process.
Reporting Fraud
If the auditor suspects any fraud, they must immediately report it to the Central Government.
Why Choose Sandeep Nalla And CO. for Your Statutory Audit
Our statutory audit services encompass these key provisions to provide comprehensive assessments and ensure compliance with regulatory requirements. With our expertise and attention to detail, we help companies maintain transparency, integrity, and financial stability.
Embracing the Statutory Audit
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