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  • Statutory audit under companies act, 2013
  • Statutory audit vs internal audit
  • Statutory audit is compulsory or voluntary
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  • Statutory audit vs internal audit...

    Statutory Audit: Definition, Examples, and Type of Audit

    What Is a Statutory Audit?

    A statutory audit is a legally required review of the accuracy of a company's or government's financial statements and records.

    The purpose of a statutory audit is to determine whether an organization provides a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records, and financial transactions.

    Key Takeaways

    • A statutory audit is a legally required review of the accuracy of a company's or government's financial statements and records.
    • The term statutory denotes that the audit is required by statute.
    • Being subject to a statutory audit is not an inherent sign of wrongdoing.
    • If inaccuracies are found, appropriate consequences may apply.
    • Firms that are subject to audits include public companies, banks, brokerages, investment firms, and insurance companies.

    Understanding Statutory Audits

    The term statutory denotes that the audit is required by statute.

    A statute is a law or regulation enacted by the leg

      when statutory audit is carried out