Statutory audit is one of the main types of audits. It is a legal requirement as per the national laws prevalent in the region. The laws of a statutory audit are in the companies act, 2013. Statutory audit is essentially an audit of financial statements of an organization i.e. profit and loss and the balance sheet. The main purpose behind statutory audit is the same as the purpose of any other type of audit that is to determine whether an organization is providing an accurate and fair picture of the companys current financial position on the date of the balance sheet. It is important for us to understand the need for statutory audit, In the case of a company where owners of the company are the stakeholders. They do not run or manage the affairs of the company so this is done by the board of directors and management of the company. In order to give assurance to the stakeholder that the accounts maintained and published by the management are authentic and genuine, the law requires an independent auditor to conduct a statutory audit. The auditor has full authority to check the financial records of the company and publish his funding through a report. The shareholders and the owner will then be assured of the authenticity of the financial statements.
Tilak Nagar, Delhi