Everything to know about Statutory Auditing

Statutory auditing is a form of audit required by a law or regulation to ensure that the account books submitted to regulators and the public are accurate and honest. Statutory audit is compulsory if the company follows such requirements. It is done by a professional Chartered Accountant who is independent of the organization. Let’s get to the Legislative Audit in depth.

Hussain Al Shemsi Chartered Accountants (HALSCA)

What is statutory Audit?

Statutory Audit is an audit mandated by the various laws, such as Reserve Bank of India, Income Tax, Companies Act, etc. A Chartered Accountant must carry out several audits according to various classification criteria.

Audit of banks by statute is mandatory. RBI nominates legislative auditors in accordance with the ICAI. A very thorough audit is performed in every branch of the banks every year after the end of the preceding financial year.

The process for doing a statutory audit

The statutory auditors should ensure that the audit report they are issuing complies with the requirements of Revised SA 700 — Forming an Opinion and Reporting on Financial Statements, SA 705 — Modifications to the Opinion in the Independent Auditor’s Report & SA 706 — Emphasis on matters in the Independent Auditor’s Report and other paragraphs in the matter.

Today, all statutory auditors are given a time frame in which they are expected to conduct the audit of the branches that they are assigned to. An auditor should accept the appointment immediately and send the branch management a formal communication and any other information that he would require

What businesses are expected to undergo auditing?

All companies in the mainland are expected to have their financial statements audited under the Commercial Companies Rule. Those organizations have at least five years to maintain their financial records. Organizations situated in the free zones do not automatically seek audits. Free zone authorities do not need an audit report from the businesses. But there are other types of companies that have to deal with mandatory account auditing. It covers Free Zone (FZCO) businesses and Free Zone (FZE) institutions.

halsca statutory audit comes with multiple advantages. It’s not a necessary evil which is considered by some business owners. Besides reviewing and analyzing the financial statements of a corporation and the history of the transaction.

We give the ability to report on the company’s accounting handling of transactions for the entire financial year. We also help in assessing the expected accounting implications as a result of the company directors’ decisions to be taken. Halsca is a qualified, authentic statutory auditing firm which relies on scores of companies.

Hussain Al Shemsi Chartered Accountants (HALSCA)