There are several different kinds of audits. Audits can be either internal or external. While the reports and findings of an internal audit are shared within the company’s management, however, the findings of external audits are to be shared with external entities like government authorities.
A statutory audit is one such external audit that is mandated to be performed on a company’s financial statements and records by an external entity. Since statutory audits are mandated by a statute or law, it needs to be conducted by professionals who know the governing bodies’ principles and ethics. Auditors will examine bank statements, ledgers, bookkeeping records, and other financial records that are submitted for tax purposes.
If you are a company that requires conducting a statutory audit, then you should choose Especia’s statutory audit services because-
Planning is required to complete the audit effectively within the specified time. Audit planning is a process of deciding in advance what is to be done, who is to do it, how it is to be done and when it is to be done by the auditor in order to have efficient and effective completion of work.
Audit planning can be done only when, the auditor is having knowledge of the business of the client. It helps in accomplishment of objectives of audit and enables the auditor to cover different aspects of audit work in a systematic manner within a preset time frame. It enhances the quality of audit work
The audit execution consists mainly of the assessment and valuation of the questions on the basis of the replies in the audit, the determination of the audit result and the degree of fulfillment, and the rating of the audit. The lead auditor prepares the execution of an audit.
An audit report is a product and outcome of any external or internal audit. Audit reports are the result of an evaluation against a set of criteria. The report indicates how the audited organisation complies with the assessed criteria. Some say the audit report must be comprehensive and include all the details of audited elements. Others believe that the audit report should not have too much detail and only include positive and negative observations.
The question is, what should a good audit report look like? What level of detail is required? Is there anything that should not be addressed in the report? What about corrective actions or root cause analysis? How to write the audit non-conformities?
Dhoorja Sri is here for you to answer all these questions
Legal compliance
According to the Companies Act, 2013 and Companies (Audit and auditors) rules, 2014, all companies are mandated by law to conduct a statutory audit of their financial filings and documents.
Authenticity
Conducting a statutory audit is important for a company because it increases the authenticity of the financial reports since they are verified by an experienced and qualified auditor.
Minimizes risk of fraud
Conducting a statutory audit can minimize the risk of fraud in an organization as it is able to detect any and all inconsistencies and redundancies in the financial statements.
