Email- auditor@candr.in
Chowdary & Rao,
Chartered Accountants, 102, MVV Lakshmi Villa,
opp: kotak school,
china waltair, visakhapatnam Andhra Pradesh 530017
+91-9959748222
+919618448222
Ph. No- 9959748222/
9618448222
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ALL RIGHTS RESERVED.
A statutory audit is a legally mandated evaluation of an organization’s financial records and operations, conducted by an independent auditor appointed by the shareholders. The objective is to provide an impartial assessment of the company’s financial health and its adherence to applicable laws and accounting standards.
The primary goal of a statutory audit is to evaluate whether the company adheres to the relevant legal and regulatory framework, and whether its financial statements present a true and fair view of its financial position. This requirement applies to all companies incorporated under the Companies Act, 2013 (and the earlier Companies Act, 1956)
STATUTORY AUDIT
In India, statutory audits are governed by the provisions of the Companies Act, 2013. A statutory audit mainly entails a comprehensive review of a company’s financial statements, such as the Balance Sheet and the Profit & Loss Account. This audit is compulsory for certain businesses that meet the specified criteria and must be conducted by an independent Chartered Accountant who has no affiliation or relationship with the entity being audited.
During the audit process, the auditor thoroughly examines key financial documents such as the income statement, balance sheet, and cash flow statement. They also evaluate the effectiveness of the company’s internal control systems to ensure they are functioning as intended. Based on the findings, the auditor issues an opinion on the financial statements, which may be:
Conducting a statutory audit enhances the company’s transparency and credibility, fostering trust among investors, creditors, and other stakeholders. It also helps identify potential weaknesses in financial reporting, allowing the organization to make improvements and mitigate risks of future mismanagement.
1. Unqualified (Clean) Opinion – indicating the financials are accurate and comply with all regulatory standards.
2. Qualified Opinion – suggesting the financials are mostly accurate, but with some exceptions.
3. Adverse Opinion – indicating significant inaccuracies or non-compliance with statutory requirements.
Other types of audit we serve: