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How do you do a company statutory audit?

How do you do a company statutory audit?

Given below are theimportant areas of consideration one has to look into while conducting the statutory audit of a company:

  1. Research the control environment of the organisation.
  2. Testing of Internal Controls.
  3. Audit of Balance Sheet.
  4. Audit of Profit & Loss Account.
  5. Audit of GST.
  6. Audit of TDS.
  7. Some other important checks:

Who can perform statutory audit?

A statutory auditor of a company is a person appointed to verify the correctness of the accounting records of the company. As per the Companies Act, 2013, only a practising Chartered Accountant (CA) is eligible to be appointed as the statutory auditor in a company.

What is statutory audit of a company?

A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records. Firms that are subject to audits include public companies, banks, brokerage and investment firms, and insurance companies.

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Who appoints the statutory auditor?

Appointed by the Comptroller and Auditor General of India. This has to be done within 60 days from the date of Registration. Appointment can also be done by Board Of Directors within 30 days of incorporation. Members can also appoint at an Extraordinary General Meeting within 60 days of Information.

How do I start a statutory audit?

1) First you examine Documentary Evidences regarding appointment/reappointment of an Auditor. 2) Examine Last Year’s copy of Audited Balance sheet, profit & loss account , schedules, notes on accounts along with 3CA/3CB, 3CD & Audit Report. 3) Carefully Examine the internal control system of the company.

Who appoints statutory auditor?

Who Cannot be appointed as statutory auditor of a company?

1. The auditing service is considered to be personal, therefore a body corporate cannot be appointed as auditor. This also ensures that the liability of the auditor does not become limited. A person holding any security of the company, carrying a voting right cannot be appointed as auditor.

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Who Cannot be appointed as statutory auditor?

If the person to be appointed or his partner holds even a single share (or other securities) of a company, he is not eligible to be appointed as an auditor. However, if a relative of such person holds securities of face value not exceeding Rs.

Who can do statutory audit in India?

Who can conduct a statutory audit? As per the law, only an independent chartered accountant, or a chartered accountant firm, or limited liability partnership firm (LLP) with majority of partners practicing in India are qualified for appointment as an auditor of a company.

What is the procedure for asking for statutory audit of company?

Cheers mate… have a good day! If you are asking for statutory audit of company, then following procedure must be followed: Make sure that all discrepancies reported by internal auditor has been sorted out by management and accounts staff. Then, also go through previous year Statutory auditors report and study their finding in audit.

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What is Stat audit and how to do it?

A To begin with I must say that stat audit is a work of great responsibility as you are reporting to the shareholders of the company via it’s directors. You must conduct an in-depth scrutiny of all the edgers of the Company. Check whether expense have been booked properly and under apt head.

How to conduct an audit for the first time?

If audit is conducted for the first time, Following steps should be followed. Make sure that all discrepancies reported by internal auditor has been sorted out by management and accounts staff. Then, also go through previous year Statutory auditors report and study their finding in audit.

What are the limitations of a statutory audit?

There are inherent limitations to a statutory audit. Statutory auditor cannot verify the 100\% records of an entity given the time, money & resource constraints at his end. He cannot give assurance that the financial statements are true & correct in all respects.