Under the Companies Act of 2013, certain entities are required to conduct a statutory audit. A statutory audit’s goal is to make sure that a company’s financial statements accurately reflect its financial position and performance.

An independent Chartered Accountant is appointed by the company’s shareholders to carry out a statutory audit. In accordance with generally accepted accounting principles in India, the statutory auditor is required to provide an opinion on the financial statements, stating whether or not they provide a true and fair view of the company’s financial position and performance. Additionally, the auditor provides a report on any significant deficiencies in the company’s internal control systems.

All businesses that are registered under the Companies Act of 2013 & other one are required to undergo a statutory audit, as are certain other businesses like banks, insurance companies, and NBFCs. The audited financial statements are made available to shareholders and other stakeholders in addition to being provided to regulatory bodies like the Securities and Exchange Board of India (SEBI) and the Ministry of Corporate Affairs.