Meaning of Statutory Audit
Statutory audit, also known as external audit, is a type of audit that is mandated by a specific statute or law to make sure that the financial statements of the entities represent a true and fair view of its state of affairs and profitability. Statutory audit is governed by the Companies Act, 2013 and Companies (Audit and Auditors) Rules, 2014.
The scope of the statutory audit mainly depends upon the guidelines and regulations set by the government. The financial statements and the accounts of the organization are scrutinized to avoid discrepancies or any possible misrepresentation and ensure reliability.
Statutory audit differs from internal audit in the sense that the statutory auditor is appointed by the stakeholders, whereas the internal auditor is appointed by the company management. The scope of the work in the statutory audit is decided by the law to check if the company’s financials represent a true and fair view. Internal audit, on the other hand, is done as per the scope decided by the management to improve operational efficiencies.
Our team of statutory auditors at KMS are well-versed with the Indian Accounting Standards (Ind-AS) and International Financial Reporting Standards (IFRS) to carry out audits for local and international firms. We work in compliance with the regulations and set of rules as prescribed by the government, which makes our audit reports even more credible, precise, and reliable.
We have experience and expertise in serving clients within retail, manufacturing, distribution, technology, banking, insurance, contracting, construction, healthcare, utilities, and non-profit organizations.
Statutory Audit Process
Our Statutory Auditors have a thorough knowledge of the subject and experience to deliver the best auditing services. They have knowledge of various industries and challenges within the businesses operating in those industries. We allocate audit resources as per the client profile and industry to make sure that the person who has a complete understanding of your industry carries out the audit. We keep them updated by investing heavily in their training and development. We organize a weekly meeting with our partners and auditors so as to exchange ideas and challenges and enhance our collective know-how.
Quality is our prime focus
KMS believes in delivering nothing but the quality in everything that we do. Our audit professionals are trained on our quality standards and code of conduct. We have established processes and procedures to ensure the quality of work. This ensures that our audit work is of consistently high quality and in line with our quality standards. We also have a peer review system where partners and managers review the work to ensure that it complies with our policies and procedures.
We regularly seek feedback from our clients to ensure that their concerns are taken care of, and we provide audit services as per their expectations.
Benefits of a Statutory Audit
Why Choose KMS for Statutory Auditing
Our high-quality auditing services uniquely combine functional specialization, decades of industry expertise, and new age auditing tools and techniques. Our proprietary auditing process, audit procedures, and statutory audit checklists help us fulfill our task with utmost confidence.
Our team of highly-qualified, hardworking chartered accountants with years of experience and expertise work with you, to bring an environment of trust and transparency. We work in compliance with the regulations and rules set by the government.
We have immense experience in carrying out the statutory audit of companies and the statutory audit of banks. Choose KMS if you want an auditing experience that is seamless and absolutely accurate for you to keep walking hiccup-free towards a brighter future.
Statutory audit applicability
For Limited Liability Partnerships (LLP): If turnover in any financial year of the LLP firm exceed Rs. 40 Lakhs or its contribution exceeds Rs. 25 Lakhs.
For Private/Public Limited Companies: Statutory audit is mandatory irrespective of turnover or profits.
Statutory audit is an external audit conducted by an auditor based on the rules and regulations stated by the government, law, or a specific statute.
What clients have to say about our Statutory Audit Services