Statutory Audit

Statutory audit under Companies Act 2013 defines that every business must undergo auditing of their accounts for every financial year (April 1 - March 31), despite their capital or turnover. This Audit is required to express an opinion thereon, which helps report and pick an accurate and honest view of a company's financial position and operating result.

Statutory audit of companies : To perform statutory audit of companies, the company directors appoints a third-party auditor as the first step. Auditors are appointed at annual general meetings (AGM) of various companies. The appointed auditor remains the same until the next AGM. Under the Companies Act, 2017, auditors can be appointed for 5 years, except in individual and partnership firms where the appointment period is a maximum of one or two terms. A third-party chartered accountant or accounting firm can be appointed as the auditor of the company.

The following list of peoples cannot be appointed as the auditor of the company;

  • An employee of the company.
  • Partner of a company employee.
  • Anyone owning an amount more than 1000/- to the company.
  • Anyone who holds the company's securities or shares.
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