What is an example of statutory audit?
E.g., like misappropriation of funds by ensuring continuous examination of data, which may be in the scope of other types of audits. A statutory auditor can ask for the company’s financial books, records, or information concerning that. It is his right, and the management cannot deny him for the same.
What is statutory and non statutory audit?
Statutory audit is authorised and governed by law or a statute; whereas the audit got done voluntarily and without any legal or statutory force is non-statutory. Examples of statutory audits are the audits of companies, banks, insurance, charitable trusts, corporate bodies and co-operative societies.
What are the types of statutory audit?
- Financial audit as prescribed under Section 139 of the Companies Act, 2013.
- Cost Audit as prescribed under Section 148 of the Companies Act, 2013.
- Secretarial audit as prescribed under Section 208 of the Companies Act, 2013.
- Tax Audit as prescribed under Section 44AB of the Income Tax Act, 1961.
What is the difference between statutory audit and external audit?
Generally statutory audit is the audit conducted by a Chartered Accountant required by the Ministry of Corporate Affairs’. An external audit is an audit authrised by any other govt law of statute and not voluntary by any business house.
Is statutory audit compulsory?
Statutory Audit as the name suggests is a compulsory audit for all companies. Every entity which is registered under the Companies Act, as a Private Limited or a Public Limited company has to get its books of accounts audited every year.
Which is not statutory audit?
The non-statutory audit is the audit of financial statements that are not required by law. It is different from the statutory audit in that the entity needs to engage with an audit firm to perform its review in financial statements.
Which audit is not a statutory audit?
A non-statutory audit is the review and verification process of the business of a company and it is not required by any law or statute.
Who can conduct statutory audit?
A statutory auditor of a company is a person appointed to verify the correctness of the accounting records of the company. As per the Companies Act, 2013, only a practising Chartered Accountant (CA) is eligible to be appointed as the statutory auditor in a company.
Who needs a statutory audit?
The accounts of a Limited Liability Partnership (LLP) must be audited if it has an annual turnover of Rs. 40 lakhs or more or Rs. 25 lakhs or more capital contribution. Tax audit on the other hand is required for Proprietorships and Partnership Firms that have cross a certain threshold of sales.
