Statutory Audit for Companies
A Statutory Audit is a mandatory financial review that ensures a company’s financial statements accurately reflect its position and comply with regulatory standards. Statutory Audit Services are essential for businesses to maintain transparency, credibility, and compliance. As per the Companies Act, 2013, every Private Limited Company, Public Limited Company, LLP, and other entities meeting specific turnover and capital thresholds must undergo a Statutory Audit to avoid legal non-compliance.
At Legal Kamkaj, we offer comprehensive Statutory Audit Services, ensuring that financial records, transactions, and regulatory filings are accurate and compliant. Our qualified Chartered Accountants (CAs) conduct a thorough examination of a company’s financials to prevent errors, fraud, and discrepancies. Statutory Audit Services help businesses maintain financial accountability, ensure tax compliance, and build investor trust.
Register Your Statutory Audit ?
Statutory Audit Services
A Statutory Audit is a mandatory financial audit conducted to ensure that a company’s financial statements accurately reflect its financial position and comply with regulatory standards. As per the Companies Act, 2013, certain businesses, including Private Limited Companies, Public Limited Companies, and LLPs, must undergo a Statutory Audit to meet legal and compliance requirements.
At Legal Kamkaj, we offer expert Statutory Audit Services to ensure financial accuracy, regulatory compliance, and transparency for companies.
Why is Statutory Audit Important?
✅ Ensures compliance with the Companies Act, 2013
✅ Builds trust among investors, shareholders, and financial institutions
✅ Detects financial fraud, errors, and discrepancies
✅ Helps in income tax and GST compliance
✅ Prevents penalties for non-compliance
✅ Strengthens internal financial controls
Who Needs a Statutory Audit? (Applicability & Requirements)
As per Section 139 of the Companies Act, 2013, the following entities must undergo a Statutory Audit:
- Private Limited Companies & Public Limited Companies : Regardless of turnover, all registered companies must conduct an annual statutory audit.
- Limited Liability Partnerships (LLPs) : If the turnover exceeds ₹40 Lakhs or capital contribution is above ₹25 Lakhs.
- Companies with Foreign Investments : To ensure compliance with international financial regulations.
- Businesses Applying for Loans & Funding : Statutory audits help secure financing by verifying financial statements.
Statutory Audit Process – Step-by-Step Guide
Here’s how the Statutory Audit Process works:
Step 1: Appointment of Auditor
- A company must appoint a qualified Chartered Accountant (CA) as its Statutory Auditor at its first AGM.
Step 2: Examination of Financial Statements
- The auditor reviews balance sheets, profit & loss accounts, and cash flow statements.
Step 3: Verification of Transactions
- Checking income, expenses, liabilities, and assets to ensure proper documentation and compliance.
Step 4: Compliance Check
- Ensuring adherence to the Companies Act, Income Tax Act, GST laws, and other financial regulations.
Step 5: Fraud & Risk Assessment
- Identifying financial misstatements, fraud, and irregularities.
Step 6: Preparation of Statutory Audit Report
- The auditor submits the Audit Report, highlighting key findings and recommendations.
Step 7: Filing with Regulatory Authorities
- Audited financials are submitted to the ROC (Registrar of Companies) and tax authorities for compliance.
Statutory Audit Compliance Checklist
✅ Appoint a Statutory Auditor as per Companies Act guidelines
✅ Maintain accurate financial records and statements
✅ Ensure timely tax & GST filings
✅ Identify & report financial risks or irregularities
✅ Submit Audit Report to ROC & tax authorities
- Non-compliance with Statutory Audit requirements can result in penalties, legal issues, and financial scrutiny.
Benefits of Statutory Audit Services
Ensures Legal Compliance
Ensures legal compliance with the Companies Act, ROC, GST, and tax rules, avoiding penalties.
Financial Transparency & Accuracy
Ensures financial accuracy by verifying records, detecting errors or fraud, and strengthening controls.
Builds Business Trust & Credibility
Builds trust and credibility, helping secure loans, attract investors, and improve reputation.
Helps in Tax Filing & Savings
Helps in tax filing by ensuring accuracy, avoiding penalties, and maximizing tax benefits.
Improves Business Decisions
Improves business decisions with clear finances, better budgeting, and smooth cash flow.
Protects Business Owners & Directors
Protects owners and directors by avoiding legal risks, ensuring smooth operations, and improving governance.
Documents Required for Statutory Audit
To conduct a Statutory Audit, companies must provide the following documents:
- Financial Statements (Balance Sheet, Profit & Loss Account, Cash Flow Statements)
- Bank Statements & Transaction Records
- GST Returns, TDS Details & Income Tax Filings
- Purchase & Sales Invoices
- Board Meeting Minutes & Shareholder Agreements
- Loan Documents & Investment Details.
Statutory Audit Service Charges
Statutory Audit fees vary based on company size, turnover, and compliance requirements. Below are our standard pricing plans:
- Basic Plan Package – From Rs. 18,000/- (For Startups & Small Companies)
- Statutory Audit Report : Rs. 12000/-
- Filing of Income Tax Return : Rs. 2,000/-
- DIN KYC Filing : Rs. 1,000/- Per Director/Partner
- ROC Filing (MGT, AOC, ADT Forms) : Rs. 4,000/-
- DPT-3 MCA Filing (If Applicable) : Rs. 3,000/-
- Standard Plan : Rs. 30,000/- Onwards (For LLPs & Mid-sized Businesses)
- Premium Plan : Rs. 50,000/- Onwards (For Large Companies & High-Volume Businesses)
Statutory Audit Services by Legal Kamkaj
At Legal Kamkaj, we provide comprehensive Statutory Audit Services, ensuring a smooth audit process with complete compliance.
Our Services Include:
✅ Financial Statement Audit : Verifying balance sheets, profit & loss accounts
✅ Regulatory Compliance Audit : Ensuring adherence to tax laws & Companies Act
✅ Internal Control & Risk Assessment : Evaluating internal accounting systems
✅ Fraud Detection & Prevention : Identifying irregularities in financial reports
✅ Tax & GST Audit Support : Assisting in tax compliance & filing
Statutory Audit Non-Compliance: Fines & Consequences
Failure to comply with Statutory Audit requirements under the Companies Act, 2013 can lead to serious legal and financial consequences, including:
- Penalties & Legal Actions : Fines up to Rs. 1,00,000 for Non-Compliance
- Disqualification of Directors : Directors may be barred from future company management
- Taxation Issues : Incorrect financial reporting can lead to penalties from tax authorities
- Loss of Business Credibility : Investors, banks, and stakeholders lose trust in the company
- Imprisonment Risk : In severe cases, directors may face imprisonment up to one year
Statutory Audit vs Internal Audit – Key Differences Explained
Both Statutory Audit and Internal Audit play a crucial role in a company’s financial health, but they serve different purposes. Here’s how they compare:
Aspect
Statutory Audit
Internal Audit
Mandate
Legally required under the Companies Act, 2013
Voluntary, based on company policy
Objective
Ensures compliance with financial regulations
Evaluates internal controls & risk management
Conducted By
External Auditor (Chartered Accountant)
Internal team or Appointed Auditors
Frequency
Annually, As per Law
Regularly (Monthly, Quarterly, or As Needed)
Focus
Financial accuracy, tax compliance, legal Adherence
Operational efficiency, fraud detection, and process improvement
Reporting To
Shareholders, government authorities (MCA, ROC, IT Dept.)
Management and Board of Directors
FAQs on Statutory Audit
- A Statutory Audit is a legally required review of a company’s financial records to ensure accuracy and compliance with laws and regulations. It is conducted by an independent auditor.
Statutory Audits are mandatory for:
- Companies registered under the Companies Act, 2013
- Limited Liability Partnerships (LLPs) with turnover exceeding ₹40 lakh or contribution exceeding ₹25 lakh
- Banks, insurance companies, and other financial institutions
- Certain entities under sector-specific laws
- A Chartered Accountant (CA) or a firm of CAs appointed as an auditor under applicable laws.