Complete Guide on Company Statutory Audit by CA
Welcome to our blog! If you’re looking to start a Complete Guide on Company Statutory Audit by CA here’s an easy guide to get you started. First, you need to hire a qualified CA who has experience in auditing businesses like yours. Once the CA is on board, make sure your financial records, like balance sheets and profit and loss statements, are accurate and ready. Then, schedule a time for the audit to take place, ideally before your annual filing deadline. During the audit, the CA will check your company’s internal controls, ensure compliance with laws, and confirm that your financial transactions are accurate. After the audit, the CA will give you a statutory audit report that highlights any issues or discrepancies. Finally, the report needs to be filed with the relevant authorities, such as the Ministry of Corporate Affairs (MCA), to meet legal requirements.
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Overview of the Statutory Audit Act for Companies
Statutory audit is a legal requirement for companies to ensure their financial records are accurate and follow the correct accounting standards. In India, under the Companies Act, 2013, all companies, except Complete Guide on Company Statutory Audit by CA need to have their financial records audited by a qualified Chartered Accountant (CA). The audit process checks if the company’s financial statements truly reflect the business’s financial position. The first auditor is appointed by the company’s board within 30 days of its creation, and after that, the shareholders choose the auditor during the Annual General Meeting (AGM). The audit gives confidence to investors, stakeholders, and the government that the company is operating in a transparent and lawful manner.
The role of the auditor is to review the company’s financial transactions, verify balance sheets, profit and loss statements, and ensure that the company is following tax laws, including income tax and GST. The auditor also checks if the company adheres to accounting standards and has solid internal controls. After completing the audit, the auditor will issue a report with their findings and opinion on the financial records. This audit report is then filed with the Registrar of Companies (ROC) along with the company’s annual filings. Statutory audits are essential for maintaining transparency, building trust with investors, and ensuring legal compliance. They also help companies spot areas where they can improve financially and prevent fraud or mistakes in accounting.
Documents Needed for Statutory Audit by a CA
For a smooth statutory audit, you’ll need to provide the following documents to your Chartered Accountant (CA). These documents help the CA verify your company’s financial transactions and ensure everything is in order.
- Previous Year Annual Report (If Not First Year)
- Final Account Statements
- TDS Data
- GST Data
- Sales and Purchase Register
- Vouchers (Expense)
- Bank Statements
- Accounting Records of Company
- Any Other Documents as asked by CA at the time of Audit
Company Statutory Audit Service Package
Our Statutory Audit Package includes everything you need for a complete audit and compliance process. We handle the following:
- Auditing books of accounts
- Preparing the statutory audit report
- Filing income tax returns
- ROC filings (MGT, AOC, ADT forms)
- DIN KYC filing
- Filing DPT-3 and MSME reports
- All other required annual filings
- Document preparation for board meetings and AGM
Our package ensures that all your statutory obligations are met, starting at Rs. 19,000. Let us take care of your audit and compliance needs while you focus on growing your business!
Key Types of Statutory Audits Every Business Should Know
- Company Audit
This is required for all companies to make sure their financial records are accurate and follow the correct accounting standards and tax laws. It ensures the company’s financial health is clear and transparent for investors, shareholders, and authorities. - Tax Audit
A tax audit is done to check that a business is following income tax and GST laws. It ensures that the company is reporting its income correctly, claiming the right deductions, and filing tax returns properly, helping avoid any legal trouble. - NGO Audit
For NGOs and charitable trusts, this audit ensures that funds are being used correctly and according to the rules. It confirms the organization’s financial transparency, which is crucial for maintaining trust with donors and authorities. - Bank Audit
Banks and financial institutions need this audit to ensure their financial records are in order and meet regulatory standards. The audit checks the bank’s operations, compliance with laws, and internal controls, keeping everything in line with financial regulations. - GST Audit
Businesses registered under GST might need this audit if their turnover is above a certain limit. It makes sure the business is following GST rules, filing returns correctly, and paying the right amount of tax, avoiding penalties or mistakes.
How to Conduct Statutory Audit by CA?
Yes, the process you’ve outlined for conducting a Complete Guide on Company Statutory Audit by CA is correct. Let’s break it down in simple terms:
- Hire a Chartered Accountant (CA)
The first step is to hire a qualified CA who has experience in auditing. They should understand your business well, so they can do a thorough job and make sure everything is legally compliant. - Prepare Your Financial Records
Before the audit, gather all your financial records, like balance sheets, profit and loss statements, receipts, and invoices. This helps the CA do their job quickly and efficiently. - Provide the Documents
The CA will need things like bank statements, sales and purchase records, expense vouchers, GST data, and TDS records. Make sure these are organized and ready to give to the CA when they start. - The Audit Process
The CA will go through your financial transactions to check if everything matches up and follows the rules, like tax laws and accounting standards. They’ll make sure your records reflect your business’s true financial health. - Audit Report
After the audit, the CA will prepare a report with their findings. If everything looks good, great! If there are any issues, they will point them out and offer suggestions. This report is important to show that you’re following the rules. - Filing with Authorities
Once the audit report is ready, you’ll need to file it with the Ministry of Corporate Affairs (MCA) or Income Tax Department, depending on your business type. You might also need to submit income tax returns and other documents. - Post-Audit Discussion
After the audit, the CA will sit down with your management team to go over the findings. They’ll advise on how to improve things, fix any issues, and help you stay compliant moving forward.
In short, a statutory audit is about making sure your company’s financial records are accurate, compliant with the law, and that your business is on track for future growth.
The Benefits of Statutory Audits By CA
- Keeps You on the Right Side of the Law
A statutory audit ensures your company is following all the legal rules, helping you avoid fines and legal trouble. - Makes Your Finances Transparent
The audit gives an unbiased check of your finances, making sure everything is accurate and reliable for investors and stakeholders. - Builds Confidence with Investors
Regular audits show investors that your company is reliable and transparent, which boosts their trust in your business. - Helps Spot Issues Early
Audits help catch any financial problems or mistakes before they get bigger, so you can fix them quickly. - Ensure Proper Tax Filing
Audits ensure your tax returns are accurate, so you avoid issues with tax authorities and any potential penalties. - Increases Trust
Having your financials checked by a professional auditor adds credibility to your business, which makes it easier to attract investors or secure loans. - Reduces Risks
Audits identify areas in your internal systems that may be vulnerable to fraud or errors, helping you tighten things up. - Supports Growth
By pointing out areas where you can improve financially, audits give you valuable insights that help your company grow and make smarter decisions.
In short, a statutory audit helps keep your company in check, builds trust, and gives you the insights needed to grow and succeed.
Vakil Adda— Professional Assistance for Company Statutory Audits
Looking to conduct a statutory audit for your company? Vakil Adda is here to assist you every step of the way! Contact us on WhatsApp at +91 9726365800 or +91 9726365853, or call us directly for expert guidance.
With over 8 years of experience, we specialize in providing seamless and efficient statutory audits for companies of all sizes. Having helped over 400+ clients, including small businesses, large corporations, and NGOs, we guarantee a smooth audit process that ensures 100% compliance with all legal requirements.
Our streamlined process helps complete the audit efficiently, giving you peace of mind and confidence in your company’s financials. We ensure all necessary documentation is in place, and that the audit is completed within the required timeframe.
Need extra support? We also offer comprehensive financial consulting to ensure your company stays compliant year-round and is ready for future growth.
Vakil Adda Office Team
📞Call/WhatsApp: +91 9726365800 | +91 9726365853
Conclusion: Why Statutory Audits Are Important for You
To wrap up, a Company Statutory Audit is a crucial step for making sure your company’s financial records are accurate and follow the law. It builds trust with investors, stakeholders, and regulators while helping you spot any financial issues or areas that need improvement. Regular audits not only keep you compliant with legal requirements but also provide valuable insights to manage your finances better. Whether you’re a new business or an established one, having a qualified Chartered Accountant handle the audit process makes everything smoother and sets you up for growth.
