Statutory audit, also known as financial audit, is one of the main types of audit which is to be done as per the statutes applicable to the entity and its primary purpose is to gather all relevant information so that the auditor can give his opinion on the true and fair view of the company’s financial position as on the balance sheet date. The purpose of the statutory audit is to Auditor has to give his view independently without being influenced in any manner. He will check the financial records and will give his opinion thereon in the audit report. It helps the stakeholders to rely on financial statements. Stakeholders other than shareholders also get benefited from this audit as they can take their call based on the accounts as they are audited and authentic.

In India, accounts of every company integrated under The Companies Act 2013 are needed to get it audited from a Chartered Accountant in Practice to assure true and fair view of its accounts & interrelated statements. Further, auditor has to also report on various other aspects as prescribed in Companies Audit Report Order (CARO) or aspects of Internal Control over Financial Reporting (ICFR).

Advantages of Statutory Audit:
1. It increases the authenticity and credibility of financial statements as the financial statements of the company are being verified by an independent party i.e., the auditor.
2. It confirms that management has taken due care while delivering their responsibilities.
3. It also states regarding the compliance with the non-statutory requirements like corporate governance etc.
4. The auditor also comments upon the strength of internal control within the organization along with internal checks among the departments or segments. He also suggests the area where internal control is weak and prone to risk. It helps the company to mitigate the risk and results in improvement of the performance of the company.
5. The financial statement of the small company for whom audit might not be applicable get more values if it is audited one because with the help of the audited financial statements it becomes easier for the companies to get banking loan and other types of facilities on producing of financial statements which are audited by an independent auditor as the audited statements are more reliable and authentic.

Brainbox’s team of experienced Chartered Accountants conduct audits as per the standards on auditing prescribed, in order to reflect true and fair view of the management books.