Statutory Audit is a legal requirement for certain companies under Indian law, ensuring that financial statements present a true and fair view of the company’s financial position. Our Statutory Audit services help businesses comply with statutory requirements while enhancing transparency and credibility.
At Mauli Pawar & Associates, we provide comprehensive Statutory Audit services to ensure your company’s financial statements are accurate, compliant, and transparent. From planning and risk assessment to final audit reporting, we handle the entire process on your behalf. We explain every step in clear terms, manage all verifications and filings, and provide professional guidance throughout. Our goal is to make your statutory audit smooth and hassle-free, so you can focus on growing your business with confidence.
Frequently Asked Questions
1. What is a statutory audit?
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A statutory audit is a legally required independent review of a company’s financial statements by a Chartered Accountant. It ensures accuracy, compliance with laws, and transparency for stakeholders.
2. Who is required to get a statutory audit?
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- Public limited companies
- Private limited companies exceeding ₹1 crore turnover or ₹50 lakh paid-up capital
- LLPs meeting statutory audit thresholds
- Businesses or professionals subject to tax audit under the Income Tax Act
- Sector-specific entities like banks, insurance companies, and NBFCs
3. Why is a statutory audit important for my business?
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It ensures that your financial statements are reliable, helps detect errors or fraud, keeps you compliant with laws, and builds trust with investors, lenders, and regulators.
4. How long does a statutory audit take?
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The duration depends on business size, complexity, and document readiness. Generally, audits take a few weeks to a couple of months.
5. What is the statutory audit process?
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The audit involves planning, assessing internal controls, verifying financial records, reconciling accounts, preparing the audit report, and submitting it to authorities.
6. What documents are required for a statutory audit?
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Books of accounts, bank statements, fixed asset and inventory registers, tax records (GST, TDS, Income Tax), contracts, invoices, receipts, and corporate records like board meeting minutes and previous audit reports.
7. What types of audit reports are issued?
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- Unqualified (Clean Report): No issues found
- Qualified Report: Minor exceptions noted
- Adverse Report: Financial statements are materially misstated
- Disclaimer: Auditor cannot form an opinion
8. Can a statutory audit detect fraud?
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Yes. While the primary objective is to verify financial statements, statutory audits can highlight discrepancies, irregularities, or signs of potential fraud.
9. Is statutory audit mandatory for all companies?
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No. It depends on the company type, turnover, capital, and sector. Public companies and businesses above certain thresholds must undergo statutory audits, while small companies below the thresholds may be exempt.
10. How often should a statutory audit be conducted?
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Statutory audits are annual. Companies must complete the audit within the timelines specified under the Companies Act or tax regulations.
11. Can small businesses benefit from a statutory audit?
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Yes. Even for small businesses, audits:
- Ensure financial accuracy
- Maintain tax compliance
- Build credibility with banks and investors
- Improve internal controls and governance
12. Who conducts the statutory audit?
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An independent Chartered Accountant or a firm of Chartered Accountants not associated with the company’s management conducts the audit.
13. Can Mauli Pawar & Associates handle the full audit process?
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Yes. We manage the audit from planning to final reporting, including all verifications, reconciliations, and statutory filings, ensuring a smooth and timely process.
14. What are the benefits of timely statutory audits?
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- Avoid penalties and legal issues
- Identify operational and financial risks early
- Ensure smooth compliance for loans or investments
- Strengthen stakeholder confidence
15. How can I prepare for a statutory audit?
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- Maintain complete and organized financial records
- Keep books of accounts updated
- Ensure invoices, receipts, and contracts are properly filed
- Prepare bank reconciliations and asset registers
- Share all necessary documents with your auditor promptly
