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WHAT IS THE PURPOSE OF STATUTORY AUDIT?
1. For LLP: Statutory audit is applicable if turnover in any financial year exceeds Rs. 40 Lakhs or its contribution exceeds Rs. 25 Lakhs.
2. For Private Company/ Public Company: Mandatory irrespective of Turnover, profits etc. If the company is incurring loss even then statutory audit is required.
A practicing chartered accountant or a Chartered accountant firm or LLP can be appointed as a statutory auditor of a company.
Documents Required For Statutory Audit
- Invoices of Purchases and Sales during the year
- Invoices of expenses incurred during the year
- Credit Card Statements if Expenses are incurred by Directors on behalf on Company
- Bank Statements from 1 April to 31 March for all bank accounts in the name of Company
- Copy of GST returns filed (If Any)
- Copy of TDS Challans Deposited (If Any)
- Copy of TDS Returns filed (If Any)
- Documentary Evidences regarding appointment/reappointment of an Auditor.
- Last Years copy of Audited Balance sheet, profit & loss account , schedules, notes on accounts along with 3CA/3CB, 3CD & Audit Report
- All statutory registers.
- List of related party transactions if any.
- Accounting data
- Stock register if any.
A company that has no accounting transactions for the financial year in question or has not started Business since its corporation
A private company in the shares of which no beneficial interest is held directly or indirectly by any corporation and which has not more than 20 members OR Any private company, being a private company that is wholly-owned by the Government, which the Minister, in the national interest, declares by notification in the Gazetteto be an exempt private company
Statutory Audit is Compulsory by law
Following Documentary Evidences are require to be verify for A Statutory Audit opening balance verification vouching cash vouching bank vouching cash verification bank reconciliation statement purchase vouching sale vouching journal vouching
statutory audit is an audit whcih is conducted by a person or a firm in whcih all the partners are member of ICAI and holding Certificate of practice, statutory auditor is basically responsible for reporting on mistakes , errors which they find during the course of audit.