Statutory Audit
Statutory Audit is an audit that is recommended by the diverse rules like Reserve Bank of India, Income Tax, Companies Act, and so on. A Chartered Accountant needs to direct numerous audits according to the diverse statute requirement.Statutory Audit of banks is obligatory.
The Procedure of Statutory Audit
The Statutory Auditors ought to guarantee that the audit report given by them complies to the necessities of Revised SA 700 – Producing an Opinion and making report on financial statements, SA 705 – Modifications to the assessment in the Independent Auditor’s Report and SA 706 – Emphasis of issue passages and other issue sections in the Independent Auditor’s Report.
These days, every single statutory examiner is given a time allotment wherein they need to embrace the audit of the branches that are distributed to them. An auditor ought to quickly acknowledge the appointment and send a conventional communication to the branch, and all other data that he would require in his audit.
Benefits statutory audit:
• It guarantees the administration that their obligations in statutory performance splendidly.
• Statutory audit improves the dependability of the distributed financial statement
• It gives inner control’s proficiency.
• The statutory review guarantees the administration that they should comply with non-statutory prerequisite state Corporate Governance necessity.
• At the point when the inside controls are poor in an organization, the statutory inspector will give the recommendation for the organization’s improvement which will help the organization from hazard and improves the organization’s exhibition.
Statutory Audit Requirement
All associations (Private Limited Company, One Person Company, Limited Company, Section 8 Company, Nidhi Company, Producer Company), regardless of the nature of business and deals turnover must pick a Statutory auditor.
Limited Liability Partnership
All Limited Liability Partnership (LLP) must have its records evaluated if the yearly deals turnover surpasses Rs.40 lakhs or if the capital commitment surpasses Rs.25 lakhs, regardless of the idea of the business
Proprietorship
Ownership firms should complete an assessment review by a Chartered Accountant if the yearly deals turnover outperforms the threshold.
The Procedure is as Follow:
• Getting Appointment Letter and Board Resolution Copy
• Getting NOC from the Previous Auditor
• Documenting our no exclusion status to the organization
• Documenting of Form 23B to ROC
• Getting a Letter of Engagement
• Appraisal of Internal Control
• Definition of Internal Audit Program Action Plan and Calendar
• Conduction Audit according to IGAAP Companies Act ICAI Accounting Standards and Auditing Standards
• Framing a sentiment on a budget report arranged by the organization
• Answering to Shareholders
• Going to AGM
Our firm is well prepared and all around experienced in Statutory Audit and we perform it according to the Audit Program intended for the organization after appraisal of their Internal Control.