Statutory audit is an important term to follow by all the businesses in India as it is mandatory by law. In India, all the companies must follow this statute who registered under companies act. As per this statute, every private and public limited company must have to audit its book of a financial book every year. The main purpose of the statutory audit is to ensure that the information such as bank balance, expenses, and other financial transaction presenting by a company is fair. It is conducted by the external auditors to prevent scam. Reports of the statutory audit are shared with shareholders. There are two kinds of statutory audit, company audit, and tax audit.
As it is a mandatory factor, the companies need to follow it with perfection. So, it is very crucial to hire a professional statutory audit service provider to ensure the audit of your company’s financial transactions. It is an important process to perform with efficiency because investors and regulatory agencies rely on the financial statements of a company to determine the actual standing of a company. This report also helps the management to determine if the company policies and objectives are being followed. The proper statutory audit should ultimately improve the way your company is managed. Here are the duties and responsibilities of an auditor that should be followed by him, this ensures the ability of a professional auditor.
Duties and Responsibilities
- The auditor needs to ask whether credits and advances made by the organization based on security have been appropriately verified and whether the terms on which they have been made are not biased to the interests of the organization or its individuals.
- He will ask about the organization, regardless of whether it is a venture organization, and if not, whether the benefits of the organization, comprising of offers and debentures.
- On the off chance that, if in the books of records, it has been expressed that if any offers have been apportioned for money, he needs to confirm whether the money has been gotten in regard to such allocation.
- In case that, if in the books of records, it has been expressed that if any offers have been allotted for cash, he needs to confirm whether the cash has been received concerning such allotment.
- Every one of the elements of the unit will be examined and will build up recognition with the organization.
- A statutory auditor will pre-plan the review as per the degree and multifaceted nature of the region which is under audit.
- An examiner will play out the assigned tasks in independent and self-coordinated design.
- The task will be finished in a convenient, precise and well-archived way.
- An auditor will behave in an expert consistently; additionally will stay away from those circumstances which can prompt analysis by the territory being evaluated or by the general public.