Why is statutory audit important?

Statutory audit is important for companies for the following reasons- Legal compliance- According to the Companies Act, 2013 and Companies (Audit and auditors) rules, 2014, all companies are mandated by law to conduct a statutory audit of their financial filings and documents. The government can impose hefty fines in the case of non-compliance. Authenticity- Conducting a statutory audit is important for a company because it increases the authenticity of the financial reports since they are verified by an experienced and qualified auditor. Minimizes risk of fraud- Conducting a statutory audit can minimize the risk of fraud in an organization as it is able to detect any and all inconsistencies and redundancies in the financial statements.

What is the difference between a statutory audit, tax audit, and GST audit?

There are several differences between statutory audit, tax audit, and GST audit. These are- Statutory audit is applicable to all companies whereas tax and GST audits are applicable to all companies and individuals. Statutory audit is mandatory for a company whereas both GST and tax audits are conditional. In the case of statutory audit, the report is submitted to shareholders whereas in the case of tax audit and GST audit the reports are submitted to the income tax department and CBEC, respectively.

Statutory Audits Services

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In India, various laws and regulatory bodies like the Reserve Bank of India, Income Tax, and Companies Act, etc. establish the requirement and provisions of statutory audit. Only A Chartered Accountant in practice is authorized to conduct the statutory audit.

Especia is one of the leading Statutory Audit firm & Tax Audit Firm to perform Auditing Services & Tax Audit Services including all Statutory & Other Laws Audit services for Income Tax & Others in Noida, Delhi, Gurgaon, NCR & All over India.

Statutory Audits of Companies:

Companies Act 2013 makes it compulsory for every company to get its accounts audited by a chartered accountant in practice. This Auditor is called a Company Auditor & this activity is called a Company Audit. Provisions of the Company Audit Report Order (CARO) have to be taken into consideration while doing the statutory audits. Especia prepares an extensive audit plan and strictly adheres to it during the audit to identify the key observations and advice to enhance productivity and achieve results at the same time.

First, we identify the applicability of Ind-AS or not. Generally, Ind- AS is applicable to the below entities.

1). All listed companies.

2). Unlisted companies having net worth greater than or equal to ₹ 250 crores.

All the Parent, Subsidiary, Associate, and Joint Venture of the above-mentioned point 1 & 2 companies. Once IND AS is applicable, an entity should be required to follow IND AS for all the subsequent financial statements.

Our Detailed Audit files & documentation for Statutory Audit Services in India makes us one of the Leading Audit Firm in India:

Generally, there are two types of files in case of recurring audits in India:

A) Permanent Audit Files means where we keep all the structural records of the company. This starts from Auditor appointment papers, All the documents relating to the previous auditor, All the Records of Organization Key documents including details of ownership, All Legal documents, All the previous audited financials as well as all the SOPs & related systems & procedures for the entity & a lot of others.

B) Current Audit Files means where generally records related to the current audit period are kept. This includes all the Resolutions and minutes of the current period, the Entire Audit planning & Audit Programme, All the working papers for audit including balance confirmations, All the statements & reconciliations, Compliance status records & all other working papers used in the audit.

Why choose us for Audit Services?

We, at Especia, a leading Statutory Audit Services Firm, Tax auditing services firm & Consultants in India have a dynamic team of professionals & Statutory Auditors who understand the sole purpose of Statutory Audit Services in India which is to understand whether an organization’s financial statements represent a true & fair view or not. We have our complete Statutory Audit checklist in place to perform audit services and that are too specific for each of the industries from manufacturing, trading, online, E-commerce as well as Service Companies in India.

If you are looking for any of the Statutory Audit services or Auditor firms in Noida, Delhi, Gurgaon, NCR or any other part of India, you can write to us accounts@especia.co.in.

There are several different kinds of audits. Audits can be either internal or external. While the reports and findings of an internal audit are shared within the company’s management, however, the findings of external audits are to be shared with external entities like government authorities.

A statutory audit is one such external audit that is mandated to be performed on a company’s financial statements and records by an external entity. Since statutory audits are mandated by a statute or law, it needs to be conducted by professionals who know the governing bodies’ principles and ethics. Auditors will examine bank statements, ledgers, bookkeeping records, and other financial records that are submitted for tax purposes.

There are several different types of statutory audits that are either by the Companies Act, 2013 and Companies (Audit and Auditors) Rules, 2014, or by other legal frameworks. Some of these statutory audits are-

The Securities and Exchange Board of India prescribes the audit of stockbrokers and credit rating agencies.
The National Health Mission mandates an internal and concurrent audit.
The Telecom Regulatory Authority of India mandates a billing and metering audit.

Statutory audit is important for companies for the following reasons-

Legal compliance- According to the Companies Act, 2013 and Companies (Audit and auditors) rules, 2014, all companies are mandated by law to conduct a statutory audit of their financial filings and documents. The government can impose hefty fines in the case of non-compliance.
Authenticity- Conducting a statutory audit is important for a company because it increases the authenticity of the financial reports since they are verified by an experienced and qualified auditor.
Minimizes risk of fraud- Conducting a statutory audit can minimize the risk of fraud in an organization as it is able to detect any and all inconsistencies and redundancies in the financial statements.

Statutory audit is compulsory for all companies and is governed by statutes and laws that govern legal entities such as the Companies Act, 2013. During the statutory audit, the auditor tries to verify and check that the company has acted and complied in accordance with the Companies Act. Statutory audits are conducted by a professional chartered accountant. Especia is a chartered accountant firm that provides excellent statutory advisory services.

There are several differences between statutory audit, tax audit, and GST audit. These are-

Statutory audit is applicable to all companies whereas tax and GST audits are applicable to all companies and individuals.
Statutory audit is mandatory for a company whereas both GST and tax audits are conditional.
In the case of statutory audit, the report is submitted to shareholders whereas in the case of tax audit and GST audit the reports are submitted to the income tax department and CBEC, respectively.

If you are a company that requires conducting a statutory audit, then you should choose Especia’s statutory audit services because-

We have a team of incredible and dynamic chartered accountants, financial professionals, and statutory auditors who will conduct the statutory audit in a true and fair manner.
Our team is experienced and qualified to provide statutory auditory services to manufacturers, traders, e-commerce websites, along with other companies.