Shweta Saboo & Co.

Statutory Audit

A Statutory Audit is a legally mandated audit of a company's financial statements, conducted to determine whether they present a true and fair view of the company's financial position as per the applicable accounting and regulatory framework. In India, statutory audits are governed under the Companies Act, 2013, and are applicable to all companies — including private limited, public limited, and certain LLPs based on turnover or contribution thresholds.

Our team of qualified Chartered Accountants ensures thorough, independent, and compliant audits that enhance transparency, improve financial credibility, and meet regulatory expectations.

Key Features

End-to-End Statutory Audit

Thorough audit conducted in accordance with the Companies Act, Income Tax Act, and applicable accounting standards.

Independent Audit Process

Neutral and objective financial examination conducted by certified auditors to build trust and transparency.

Internal Control Review

Evaluation of financial processes and internal controls to detect gaps and mitigate operational and compliance risks.

ROC & MCA Compliance

Validation of statutory filings, resolutions, and registers to ensure complete MCA and ROC compliance.

Audit Report & Recommendations

Detailed audit report highlighting key observations, irregularities, and improvement recommendations.

Tax & Financial Reconciliation

Reconciliation of financial records with TDS, GST, Form 26AS, and AIS for complete tax compliance.

Board & Investor Reporting

Investor-friendly audit documentation for board presentations, compliance review, or funding rounds.

CARO 2020 Compliance

Reporting compliant with Companies (Auditor's Report) Order, 2020, wherever applicable.

Information Checklist

To conduct a statutory audit smoothly, the following documents and details are typically required:

Company Documents:

Certificate of Incorporation
PAN & TAN of the Company
MOA & AOA
Details of Directors/Partners

Financial Statements:

Trial Balance
Profit & Loss Account
Balance Sheet
Cash Flow Statement
Notes to Accounts

Bank & Ledger Details:

Bank Statements (all accounts)
Bank Reconciliation Statements (BRS)
General Ledger
Debtors & Creditors Ledger

Compliance & Tax Filings:

GST Returns and Reconciliation
TDS Returns (Form 26Q, 24Q, etc.)
Form 26AS and AIS
Income Tax Return (latest filed)

Operational Information:

Invoices (sales & purchases)
Fixed Assets Register
Inventory Valuation Report
Payroll Details & Salary Sheets

Other:

Board Meeting Minutes & Resolutions
ROC Filings (AOC-4, MGT-7)
Previous Year’s Audit Report
Statutory Registers (if maintained)

FAQs

What is a Statutory Audit?

A Statutory Audit is a legally required audit of an organization's financial statements, conducted to ensure compliance with the Companies Act, accounting standards, and regulatory guidelines.

Who is required to undergo a Statutory Audit in India?

All companies registered under the Companies Act, including Private Limited and Public Limited Companies, must undergo a statutory audit annually, regardless of turnover or profit.

Are LLPs required to get a statutory audit done?

Yes, LLPs must get audited if their annual turnover exceeds ₹40 lakhs or if their capital contribution exceeds ₹25 lakhs during the financial year.

Who can conduct a Statutory Audit?

Only a practicing Chartered Accountant (CA), or a CA firm registered with the Institute of Chartered Accountants of India (ICAI), can conduct a statutory audit.

What is the due date for completing a Statutory Audit?

For companies, the statutory audit must be completed before the due date of filing the ROC forms — typically AOC-4 (within 30 days of AGM) and MGT-7 (within 60 days of AGM).

What is CARO 2020 and does it apply to all companies?

CARO (Companies Auditor’s Report Order) 2020 prescribes additional disclosures in the audit report and applies to most companies except small companies and certain exempted entities.

What are the consequences of not conducting a statutory audit?

Failure to conduct a statutory audit can lead to penalties, disqualification of directors, and legal actions under the Companies Act. It may also affect fundraising and credibility.

Is Statutory Audit different from Tax Audit?

Yes, a statutory audit is mandated under the Companies Act, while a tax audit is governed by the Income Tax Act and is required only if turnover exceeds the specified limit (currently ₹1 crore or ₹10 crore in certain cases).

Can statutory audit reports be used for investors or loan applications?

Yes, statutory audit reports are considered reliable and often required by banks, financial institutions, and investors as proof of financial credibility.

Do startups also require a statutory audit?

Yes, if a startup is incorporated as a private limited company or LLP (crossing the audit threshold), it is required to undergo a statutory audit annually.