• Private Limited Companies (Pvt. Ltd.)
  
  
• Public Limited Companies
  
  
• Limited Liability Partnerships (LLPs) exceeding turnover limits
  
  
• Section 8 Companies (Non-profit organizations)
  
  

The purpose of a statutory audit is to ensure that the company’s accounts are free from material misstatements, fraud, or errors and reflect the true financial position of the entity.

📘 Legal Framework

🧾 Objectives of Statutory Audit

✅ To ensure compliance with the Companies Act, Accounting Standards, and GST/Income Tax laws.
✅ To verify accuracy of financial statements, including Balance Sheet and Profit & Loss Account.
✅ To detect frauds or irregularities in financial transactions.
✅ To confirm proper maintenance of books of accounts as per law.
✅ To provide stakeholders (investors, lenders, regulators) with assurance of financial credibility.

🧮 Scope of Statutory Audit

A Statutory Audit covers all major financial areas of the business:

🧾 Documents Required for Statutory Audit

To conduct a smooth and accurate statutory audit, the following documents are generally required:

1. Financial Statements

• Balance Sheet
  
  
• Profit & Loss Account
  
  
• Trial Balance
  
  
• Cash Flow Statement
  
  
• Notes to Accounts
  
  

2. Supporting Records

• Purchase & Sales Ledgers
  
  
• Bank Statements and Reconciliations
  
  
• Fixed Assets Register
  
  
• GST and TDS Returns
  
  
• Invoices, Vouchers, and Bills
  
  
• Loan and Investment Details
  
  

3. Corporate Records

• Certificate of Incorporation
  
  
• Memorandum & Articles of Association (MOA/AOA)
  
  
• Shareholder and Director details
  
  
• Board Meeting Minutes & Resolutions
  
  
• Statutory Registers (Share Register, Directors’ Register, etc.)
  
  

⚙️ Statutory Audit Process – Step by Step

Step 1: Appointment of Auditor

• Appoint a qualified Chartered Accountant as per Section 139 of the Companies Act.
  
  
• File Form ADT-1 with the Registrar of Companies (ROC).
  
  

Step 2: Planning the Audit

• Understand the business operations, accounting system, and internal controls.
  
  
• Develop an audit plan and risk assessment framework.
  
  

Step 3: Verification of Financial Data

• Check all vouchers, invoices, bank statements, and ledgers.
  
  
• Verify tax compliance, ITC claims, and statutory dues.
  
  

Step 4: Reconciliation & Confirmation

• Match ledgers with third-party confirmations (debtors, creditors, banks).
  
  
• Verify consistency between financial statements and tax returns.
  
  

Step 5: Drafting of Audit Report

• Prepare a detailed Audit Report under Section 143 of the Companies Act.
  
  
• Highlight qualifications, observations, or irregularities (if any).
  
  

Step 6: Submission & Filing

• Submit the signed Statutory Audit Report along with Form AOC-4 and MGT-7 to the ROC.
  
  

💰 Statutory Audit Fees (Indicative)

(Fees vary based on turnover, complexity, and number of transactions.)

🧾 Contents of a Statutory Audit Report

• Auditor’s opinion (true & fair view)
  
  
• Basis of audit opinion
  
  
• Observations and remarks (if any)
  
  
• Verification of accounting standards (AS / Ind AS)
  
  
• Internal control comments
  
  
• Reporting under CARO 2020 (Companies Auditor’s Report Order)
  
  
• Auditor’s signature, membership number, and date
  
  

⚠️ Non-Compliance Consequences

📈 Benefits of a Statutory Audit

✅ Ensures Legal Compliance & Transparency
✅ Boosts Stakeholder & Investor Confidence
✅ Detects Fraud and Financial Irregularities Early
✅ Enhances Internal Control Systems
✅ Improves Creditworthiness for Loans & Tenders
✅ Ensures Compliance with ROC, GST, and Tax Laws

🏛️ Legal References

• Companies Act, 2013 – Section 139 to 147
  
  
• CARO, 2020 – Companies Auditor’s Report Order
  
  
• Rule 10 to 14 of Companies (Audit & Auditors) Rules, 2014
  
  
• ICAI Standards on Auditing (SA 200 to SA 720)
  
  

🌟 Why Choose Team GBC for Statutory Audit Services?

✅ Experienced Chartered Accountants & Audit Experts
✅ End-to-End Statutory & Tax Audit Support
✅ Accurate, Transparent & Compliance-Ready Reports
✅ Assistance in ROC Filings & CARO 2020 Reporting
✅ Dedicated Team for Quick Turnaround
✅ PAN India Service – 100% Online Coordination

🏁 Conclusion

A Statutory Audit is more than a compliance formality — it is a strategic financial health check for your organization. It builds trust, transparency, and accountability, ensuring your company stands strong before regulators, investors, and lenders.

At Team GBC, we make the audit process smooth, efficient, and insightful, empowering you to make data-driven financial decisions while staying fully compliant.

📞 Contact Team GBC today for professional Statutory Audit and Compliance Services across India.

💼 Team GBC – Your Trusted Partner for Statutory, Tax & Compliance Audits.