Statutory Audit: Applicability & Forms

A Statutory Audit is a legally required examination of an entity’s financial statements to assess their accuracy and compliance with applicable laws and accounting standards. For companies, it is conducted by an independent Chartered Accountant under the Companies Act, 2013.

✅ Applicability of Statutory Audit

1. Companies

All companies registered under the Companies Act, 2013—including private companies, public companies, OPCs, and Section 8 companies—are generally required to have their accounts audited annually, irrespective of turnover or profit/loss.

2. Limited Liability Partnerships (LLPs)

An LLP is required to have its accounts audited where it crosses the applicable thresholds under the LLP Rules, including:

• Turnover exceeding ₹40 lakh, or

• Contribution exceeding ₹25 lakh

3. Trusts, Societies & NGOs

Audit requirements depend on the applicable law, legal structure, tax registrations, funding arrangements, and state-specific requirements. Additional audit or reporting requirements may apply to entities claiming tax exemptions or receiving foreign contributions.

4. Entities Governed by Other Laws

Co-operative societies, housing societies, educational institutions, and other regulated entities may be subject to audit requirements under their respective laws or regulatory frameworks.

Statutory Audit Forms & Filings

Note: Statutory audit is separate from tax audit, internal audit, cost audit, and other regulatory audits, which may apply based on the entity, activity, and applicable provisions.

🎯 Why Statutory Audit is Important

• Improves Financial Transparency

• Strengthens Stakeholder Confidence

• Identifies Errors and Misstatements

• Supports Legal Compliance

• Improves Financial Record-Keeping

• Supports Banking, Funding, and Regulatory Requirements