Statutory Audit
A Statutory Audit is a mandatory independent examination of a company's financial statements by a qualified Chartered Accountant, required under the Companies Act, 2013. It verifies that financial records give a true and fair view of the company's financial position, and is required regardless of the company's size or profitability.
WHAT YOU NEED
Requirements to register a Public Limited Company
How it's done
- ✓Appoint Auditor : Company appoints a statutory auditor at its AGM
- ✓Audit Planning : Auditor reviews financial records, internal controls, and compliance areas
- ✓Fieldwork : Verification of transactions, ledgers, bank statements, and supporting documents
- ✓Draft Audit Report : Auditor prepares findings and observations
- ✓Finalize & Sign : Audited financial statements and auditor's report are finalized for ROC filing
Who needs it
- ✓All registered companies, regardless of turnover or profit
- ✓LLPs with turnover above ₹40 lakh or capital contribution above ₹25 lakh
Good to know
- ✓Auditor must be independent cannot have a conflict of interest with the company
- ✓Audited financials are mandatory before filing Annual ROC returns (AOC-4)
