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.
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)
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.
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:
- Unqualified (Clean) Opinion – indicating the financials are accurate and comply with all regulatory standards.
- Qualified Opinion – suggesting the financials are mostly accurate, but with some exceptions.
- Adverse Opinion – indicating significant inaccuracies or non-compliance with statutory requirements.
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.
Choosing us for your statutory audit needs is a strategic move that guarantees accuracy, regulatory compliance, and financial transparency for your business. As a reputed CA firm serving Pune, we offer exceptional audit solutions tailored to your specific requirements. Here’s what sets us apart:
- Rich Industry Experience
Our team comprises highly skilled and experienced Chartered Accountants with deep expertise in statutory audits. We’ve successfully handled audits across diverse sectors, making us one of the most reliable audit firms in Pune.
- Independent & Unbiased Audits
We take pride in upholding complete independence throughout the audit process. As a third-party audit firm, our assessments are free from internal bias, ensuring you receive a fair, objective, and trustworthy evaluation of your financial statements. - Detailed and Risk-Based Audit Approach
Our audit methodology is comprehensive and tailored to the nature and complexity of your business. We follow a risk-based strategy, focusing on key financial and compliance areas to provide valuable insights while ensuring complete adherence to statutory requirements. - Timely Delivery and Efficient Execution
With a structured and streamlined workflow, we ensure timely completion of audits without compromising quality, making us a preferred choice among audit firms in Pune
- Client-Centric and Customized Services
Every business is unique, and so are its audit needs. We take time to understand your operational and financial environment, offering personalized solutions that align with your objectives and regulatory obligations.
At our Chartered Accountant firm in Pune, we follow a structured and systematic approach to conducting statutory audits, ensuring full compliance with regulatory standards and delivering value-driven insights. Here’s an overview of the key steps we follow in the statutory audit process:
- Understanding the Business Environment
We begin by gaining an in-depth understanding of your business operations, industry, internal controls, and financial reporting framework. This helps us identify potential risk areas and design a tailored audit strategy. - Planning the Audit
Our team prepares a comprehensive audit plan that outlines the scope, objectives, timelines, and key focus areas. The audit plan is designed using a risk-based approach to ensure efficient resource allocation and thorough examination of critical areas. - Assessment of Internal Controls
We review your internal control systems to evaluate their effectiveness in preventing errors, fraud, or misstatements. This includes analyzing processes, approvals, documentation, and segregation of duties within your organization. - Substantive Testing and Verification
Our auditors carry out detailed testing of financial records, transactions, and supporting documents. This includes verification of account balances, ledger scrutiny, revenue recognition, asset valuation, liabilities, and compliance with accounting standards. - Analytical Procedures
We apply analytical procedures to compare current financial data with historical trends, budgets, and industry benchmarks. Any unusual variances are thoroughly investigated and documented. - Compliance Review
As part of the statutory audit, we verify compliance with applicable laws, including the Companies Act, 2013, Accounting Standards (AS/Ind AS), and other relevant regulatory requirements. - Reporting & Audit Opinion
Upon completion, we prepare a statutory audit report in the prescribed format, highlighting our observations, qualified or unqualified opinion, and any adverse remarks or disclaimers if applicable. Our reports aim to provide stakeholders with an accurate and fair view of your financial position. - Discussion and Feedback
We hold a detailed discussion with the management to present our findings, suggest improvements, and address any concerns. Our goal is not just to report issues but to help you enhance financial practices and internal controls.
