Who Needs a Statutory Audit?

• Companies.
• Charitable Trusts.
• Banks and Financial Institutions.
• Government Enterprises and certain Public Sector Undertakings (PSUs).
• Non-Banking Financial Companies (NBFCs), Insurance Companies, and other regulated entities.

What are the Purposes of Statutory Audit?

• It helps in identifying fraud, errors, or mismanagement in the organization’s financial operations.
• It provides assurance to investors, creditors, and other stakeholders that the financial statements are reliable.
• It reveals weaknesses in internal controls, which the organization can then address to improve its financial reporting systems.
• It confirms that the organization complies with the relevant laws and regulations (like tax laws, corporate governance standards).
• It enhances the transparency and accountability of the organization, helping it build trust with investors, customers, and regulatory bodies.
• It ensures that the financial statements are free from material misstatements and fairly reflect the financial position of the organisation.