STATUTORY AUDIT MANAGEMENT
What is Statutory Audit Management?
The statutory audit is a legally required overview of the accuracy of a agency’s or government’s monetary statements and records. MY AUDIT is a handy Statutory audit Management software that will help you in your statutory audit process. The reason of a statutory audit is to decide whether or not an enterprise presents a truthful and correct illustration of its monetary function through inspecting statistics which includes financial institution balances, bookkeeping records, and monetary transactions.
Who Performs A Statutory Audit?
As according to the law, handiest an unbiased chartered accountant, or a chartered accountant organization, or limited liability partnership firm (LLP) with majority of companions working towards in India are certified for appointment as an auditor of a agency. Our Software for auditors helps the internal or external auditors to make there audits easy and manageable.
What is the purpose of Statutory Audit?
The Purpose of the statutory audit is to decide whether or not a agency is offering an correct illustration of its monetary scenario through inspecting the statistics, which includes books of account, financial institution stability, and monetary statements. All public and personal restricted agencies should go through a statutory audit. Our Statutory audit automation software enables auditors to enhance the their auditing skills as well as helps the corporation to grow.
Types of Statutory Audit
As according to the Companies Act 2013, and Companies (Audit and Auditors) Rules, 2014, the subsequent forms of Statutory audit exists: (however now no longer restricted to)
- Financial audit
- Cost Audit
- Secretarial audit
- Tax Audit
- GST Audit
Limitations of Statutory Audit
The fee related to an audit may be very high. But an audit organization engaged in searching after the each day paintings, which includes debts preparation, etc., then it’ll rate incredibly very much less quantity to behavior the audit compared with the organization now no longer engaged.
The monetary statements encompass judgmental in addition to subjective matters. Judgemental problems may also range with persons. Sometimes private enterprise is likewise included.
There are many regions wherein auditors haven’t any different choice than to take illustration from control. It is a hazard if control itself is concerned in fraud. In that case, they’ll deliver the manipulated image.
The auditor does now no longer investigate and overview the 100 % transactions. Auditor simply expresses his opinion at the monetary statements and statistics supplied to him and, at no point, offers general assurance.
Statutory Audit Programme Checklist
| Audit Planning | Control Testing | Substantive Testing |
|---|---|---|
| Task Assignment | Internal Financial Control | Share Capital |
| Business Briefing | SSC | Reserve & Surplus |
| Ratio Analysis | Share Application Money Pending allotment | |
| Variance Analysis | Long Term Borrowings | |
| Walk through | Short Term Borrowings | |
| Deferred Tax | ||
| Other Long Term Liabilities |
| Substantive Testing | Substantive Testing | Substantive Testing |
|---|---|---|
| Employees Benefits | Investments | Fixed Deposits with Less than 3 months Maturity |
| Others | Loans & Advances (Assets) | Other Current Assets |
| Trade Payables | Other Non-Current (Assets) | Prepaid Expenses |
| Other Current Liabilities | Inventories | Revenue From Operation - Manufacturing |
| C.W.I.P. | Trade receivables | Revenue From Operation - Trading |
| Depreciation / Amortisation | Cash at Bank | Revenue From Operation - Service |
| Fixed Assets | Cash on Hands | Other Operating Revenue |
| Substantive Testing | Substantive Testing | Substantive Testing |
|---|---|---|
| Other Income | Postage & Couriers | Repair & Maintain ace |
| Purchase | Printing & Stationary | Misc. Expenses |
| Employee Benefits | Telephone Expenses | 789 |
| Finance Cost | Conveyance | Provision for Tax |
| Rent | Insurance | Tax Status |
| Freight | Electricity & Power | |
| Business Promotion | Professional Charges |
| Substantive Testing - Notes | Substantive Testing - Notes |
|---|---|
| Capital Commitments | Related Party Transaction |
| Contingent Liabilities | Segment Reporting |
| Earning in Foreign Currency (Accrual Basis) | Value of Imported & Indigenous Raw Materials, Stores and Spares consumed |
| EPS & Deferred Tax | Value of Imports (on CIF Basis) |
| Expenditure in Foreign Currency (Cash Basis) | |
| Lease Disclosure Requirements | |
| Other Material Disclosures |
Conclusion
Statutory audit is one of the foremost forms of audits, required legally to study the accuracy of a agency or government’s monetary debts. It is carried out to acquire exceptional statistics in order that the auditor can deliver his opinion at the actual and truthful view of the agency’s monetary function as at the stability sheet date. We will provide personalized auditing tools for the betterment of the company.
The statutory audit will increase the authenticity and credibility of monetary statements, as an unbiased celebration is verifying the monetary statements of the agency. After doing the whole verification and amassing statistics, the auditor will finish through writing is an audit report Primarily based totally at the diverse proof and statistics at the actual and truthful view of the monetary statements supplied to him.