Statutory Audit is a legally mandated audit of an organization’s financial statements to ensure accuracy, compliance, and transparency as per applicable laws and regulations. It is conducted by an independent Chartered Accountant in accordance with the Companies Act, 2013, or other governing laws based on the entity type. The purpose of a statutory audit is to determine whether the company’s financial records present a true and fair view of its financial position and operations. All Private Limited Companies, Public Limited Companies, and LLPs (with turnover over ?40 lakhs or capital contribution over ?25 lakhs) are required to get their accounts audited annually. Statutory audit enhances financial credibility, ensures compliance with tax and corporate laws, and builds stakeholder confidence. At Wegmans India, we provide comprehensive statutory audit services to help businesses stay compliant, minimize risks, and maintain financial integrity.
Certificate of Incorporation
PAN Card of the Company/LLP
MOA & AOA / LLP Agreement
Trial Balance
Balance Sheet & Profit & Loss Statement
Bank Statements
Purchase & Sales Invoices
Expense Details
GST Returns (if applicable)
TDS Returns (if applicable)
.
1. Ensures Financial Accuracy
A statutory audit verifies that the financial statements are true, fair, and free from errors, which helps build internal confidence and accountability.
2. Legal Compliance
It helps companies comply with legal requirements under the Companies Act, Income Tax Act, and other applicable regulations, avoiding penalties or legal consequences.
3. Improves Stakeholder Trust
Audited financials enhance the credibility of the business among investors, banks, government departments, and other stakeholders.
4. Facilitates Loans & Funding
Banks and financial institutions often require audited financial statements to process loans or funding, making audit essential for business growth.
5. Detects Fraud & Mismanagement
Audits can help uncover fraud, misuse of funds, or internal control weaknesses, allowing for timely corrective actions.
6. Supports Decision-Making
Reliable and audited financials provide accurate insights into business performance, helping management make informed decisions.
7. Ease in Filing Tax Returns
Since audit ensures that all accounts and ledgers are accurate, it simplifies income tax filing and reduces chances of scrutiny.
5 to 7 days
1. What is a statutory audit?
A statutory audit is a legally required audit of a company’s financial records and statements, conducted by an independent Chartered Accountant to ensure compliance with applicable laws.
2. Who is required to conduct a statutory audit?
All Private Limited Companies, Public Limited Companies, and LLPs (with turnover above ?40 lakhs or contribution above ?25 lakhs) must conduct a statutory audit annually.
3. Is statutory audit applicable to all companies?
Yes, it is mandatory for all companies registered under the Companies Act, regardless of turnover or profit.
4. What is the objective of a statutory audit?
The main goal is to verify that the company’s financials present a true and fair view and comply with accounting standards and legal provisions.
5. Who conducts the statutory audit?
A practicing Chartered Accountant (CA), who is independent of the company, conducts the statutory audit.
6. What is the due date for statutory audit?
The audit must be completed before the annual return filing deadlines:
– 30th September for companies
– 30th October for LLPs (if applicable)
7. What if a company fails to get a statutory audit done?
Failure to conduct a statutory audit may result in penalties for the company and its directors, including disqualification and fines under the Companies Act.
8. Is tax audit the same as statutory audit?
No. A statutory audit is done under the Companies Act, while a tax audit is conducted under the Income Tax Act when turnover crosses ?1 crore (for business) or ?50 lakh (for professionals).
9. What documents are required for statutory audit?
Basic documents include Trial Balance, Balance Sheet, Profit & Loss A/c, bank statements, invoices, and company incorporation documents.
10. Can a statutory auditor be changed?
Yes, a company can change its statutory auditor, but the change must be approved by the Board or shareholders and filed with the MCA as per prescribed procedure.