Audit of Financial Statements

Overview

"The Statutory Audit under the Companies Act, 2013 is a mandatory process that requires companies to have their financial statements and accounts audited by an independent auditor to ensure they are accurate and comply with the law.

This process provides assurance to stakeholders that the company's financial statements are free from material misstatements and provide a true and fair view of the company's financial position and performance. Statutory audits also help to detect and prevent fraud, improve financial reporting, and increase transparency and accountability in the company's operations.

Our Expert team of professionals at SureTax Fincare will provide you necessary assistance and guidance in Statutory Audit of your Company."

Advantages

Improved transparency

The statutory audit provides a high level of transparency, which helps to build trust among stakeholders, including shareholders, regulators, and tax authorities.

Compliance

The statutory audit helps companies to comply with legal requirements under the Companies Act, 2013 and other related legislation.

Improved decision making

The results of the statutory audit can provide valuable information to company management, enabling them to make more informed decisions about future business strategies and investments.

Increased shareholder value

The statutory audit helps to increase shareholder value by providing stakeholders with a clear picture of the financial health and performance of a company.

Enhanced credibility

Companies that undergo a statutory audit are viewed as being more credible, which can help to attract investment and increase business opportunities.

Early detection of fraud

The statutory audit can help to detect and prevent fraud by providing an independent and objective review of financial transactions and records.

Better Risk Management

The statutory audit helps companies to identify
and manage risk by providing an in-depth analysis of financial records
and transactions.

Features of Statutory Audit:

A statutory audit under the Companies Act, 2013 refers to an independent examination of a company’s financial records and operations to ensure that they comply with the legal and regulatory requirements. Some of the key features of a statutory audit under the Companies Act, 2013 are:

1. Conducted by a qualified chartered accountant (CA)

2. Required for all companies except small companies and one-person companies

3. Covers the examination of financial statements and books of account

4. Includes review of internal
controls and management
practices

5. Required to be completed within 9 months from the end of the financial year

6. The auditor is required to issue an auditor's report indicating the findings of the audit

7. Non-compliance with the provisions of the Companies Act, 2013 may result in penalties and disqualification of the directors.

It is important to note that the statutory audit serves as a safeguard to protect the interests of stakeholders, including shareholders, creditors, and employees, by ensuring that the company is operating in a transparent and accountable manner.

Frequently Asked Question

Only a qualified chartered accountant (CA) registered with the Institute of Chartered Accountants of India (ICAI) can conduct a statutory audit under the Companies Act, 2013.

Yes, statutory audit is mandatory for all companies except small companies and one-person companies.

A statutory audit must be completed within 9 months from the end of the financial year.

A statutory audit covers the examination of financial statements and books of account, review of internal controls and management practices, and the compliance with the legal and regulatory requirements.

The auditor's report is a written statement issued by the statutory auditor indicating the findings of the audit, including any irregularities or non-compliance with the provisions of the Companies Act, 2013.

Non-compliance with the provisions of the Companies Act, 2013 during a statutory audit may result in penalties and disqualification of the directors.

The purpose of a statutory audit under the Companies Act, 2013 is to serve as a safeguard to protect the interests of stakeholders, including shareholders, creditors, and employees, by ensuring that the company is operating in a transparent and accountable manner.

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Audit of Financial Statements