A statutory Audit is a type of audit that is mandated by a Statute or Law to ensure the true and fair view of the book of accounts of a business is presented to the Regulators and the Public. Unlike an internal audit, Statutory Audits are not optional and must be performed if a business satisfies certain criteria. Statutory audits must be completed by qualified Chartered Accountants who are independent of the Business. Further, the report prepared by the Auditor on his/her findings must be presented in the format prescribed by the Regulator.

Statutory Audits can be mainly classified into two types, company audits and tax audits. As per the Companies Act, 2013, every company, irrespective of its sales turnover or nature of business or capital must have its book of accounts audited each financial year. Thus, the Board of Directors of a Company are required by law to appoint an Auditor within 30 days of incorporation and thereafter conduct an audit of its financial statements each financial year. The accounts of a Limited Liability Partnership (LLP) must be audited if it has an annual turnover of Rs.40 lakhs or more or Rs.25 lakhs or more capital contribution. Tax audit on the other hand is required for Proprietorships and Partnership Firms that have crossed a certain threshold of sales. IndiaFilings can help you find a Statutory Auditor for your Business.