The term Statutory Audit means any audit that the law prescribes. However, its most common use is in respect of the audit under Companies Law in India. The Companies Act 2013, (earlier Companies Act, 1956) makes a yearly audit compulsory for every company.
PocketLawyer is India's leading platform for auditing services and we make the process of Statutory Audit easy and hassle-free for you. In addition to Statutory Audit PocketLawyer can also help you with Secretarial Audit, Forensic Audit, Tax Audit, Internal Audit, Audit of Cooperative Society, Audit of Charitable Trust and more.
The following entities need to have a compulsory audit. The turnover or type of business is irrelevant in such cases.
- Private limited companies
- Nidhi companies
- Section 8 companies
- One person companies
- Limited companies
Steps in Statutory Audit
- Preparing a Letter of appointment of the Auditor.
- Passing a Board Resolution.
- Getting a No Objection Certificate (NOC) from the previous auditor (if any).
- Intimating the company about the auditor's no disqualification status.
- Filing Form 23B to Registrar of Companies (RoC) as an intimation of appointment.
- Preparing a Letter of Engagement of Auditors.
- Assessing the present internal situation of the company.
- Making an audit plan.
- Performing the audit as per the Accounting Standards and Auditing Standards in India.
- Preparing an Audit report and audit opinion.
- Making a report and then presenting it to shareholders.
- Attending the Annual General Meeting (AGM) as auditors.
Documents for Statutory Audit
- To facilitate smooth conduct of audit, you will need the following documents.
- Balance sheet and details such as share application money and share capital.
- Bank Account statement as well as Bank Reconciliation Statement.
- All information about secured loans such as confirmation of balance from banker and/or financial institution, interest rate calculations etc.
- Information about unsecured loans in detail. For instance, agreements with lenders, rate of interest, and loan acceptance documents.
- All details about current liabilities as well as assets.
- Government dues such as TDS, TCS, VAT, Service Tax, Sales Tax etc.
- Details as well as proof of payment of all the above dues.
- All details about fixed assets and the stock of business.
- Profit and Loss Account and a detailed break-up of all items in it.
- Legal records such as minutes of meetings.
Moreover, we will need various other details for completing the audit. We will provide you a detailed list before starting the audit.
Fee for Statutory Audit
The government fee starts from Rs. 200 and the professional fee varies according to the type of company and their turnover per year.
Timeline for Statutory Audit
On an average, it takes anywhere between 30-60 days to complete a statutory audit. The actual time taken will depend on the size of business, number of transactions, and the complexities of those transactions.
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At PocketLawyer, you can post your requirement and get the best price quotation of lawyers/professionals. These professionals are experts in company law and can provide you their best services at affordable price.
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