Statutory Audit Services Firm

Statutory Audit Services by TaxPro Experts

A statutory audit is required to assess whether a company complies with the applicable laws, rules, regulations, and standards, ensuring that the financial statements reflect a true and fair view of its financial position. It applies to all companies registered in India under the erstwhile Companies Act, 1956, and the Companies Act, 2013, as well as Limited Liability Partnerships (LLPs) with a turnover exceeding Rs. 40 Lakhs or a contribution of Rs. 25 Lakhs.

Section 139(1) of the Companies Act, 2013, read with Rule 3 of Companies (Audit & Auditors) Rules, 2014, mandates that every company must appoint an individual/firm as an auditor.

Section 139(6) of the Act states that the first auditor of a company must be appointed within 30 days of its date of registration.

Statutory Audit Requirement:

Companies:

All companies, including Private Limited, One Person Company, Limited Company, Section 8 Company, Nidhi Company, and Producer Company, must appoint a statutory auditor, irrespective of their nature of business or turnover.

LLPs:

All Limited Liability Partnerships (LLPs) with annual turnover exceeding Rs. 40 Lakhs or capital contribution exceeding Rs. 25 Lakhs must have their accounts audited.

Proprietorship Firms:

A proprietorship firm must complete a tax audit by a Chartered Accountant if its annual turnover exceeds Rs. 1 crore (for businesses) or if annual gross receipts exceed Rs. 25 Lakhs (for professions).

Key Areas of Consideration in a Statutory Audit

Testing of Internal Controls

Auditors assess the effectiveness of internal controls to detect and prevent fraud and errors. If controls are weak, substantive testing is increased.

Verifying Balance Sheet Items

A balance sheet audit involves verifying secured loans, fixed assets, bank statements, reconciliations, depreciation records, and invoices.

Verifying Profit & Loss Account Items

Key considerations include:

Year-over-year comparison and industry benchmarking

Trend analysis to assess financial performance

Breakup of sales and purchases

Capitalization of preliminary expenses within five years

Valuation of closing stock as per AS-2

Testing TDS Compliances

Auditors ensure:

Accuracy of TDS voucher entries

Verification of all TDS-related source documents

Reconciliation of books with challans and returns

Other Important Checks

Compliance with dividend payout regulations

Verification of Provident Fund, ESIC, Gratuity, Bonus, and Leave Encashment payments

Ensuring loans/advances comply with the Companies Act, 2013, and the Income Tax Act, 1961

Why Choose TaxPro Experts for Statutory Audit Services?

TaxPro Experts is a leading firm offering statutory audit services across India. Our team of professional auditors ensures compliance with all statutory requirements and provides transparent, accurate, and insightful financial reporting. Our audits are conducted strictly in accordance with the rules and regulations defined by government agencies, ensuring complete financial integrity and governance.

If you are looking for a trusted statutory audit service provider in Delhi, TaxPro Experts is here to assist you.

Statutory Audit