Statutory Audits In Hyderabad
A statutory audit in tax services is a legally mandated audit conducted to assess and verify the accuracy and fairness of an organization's financial statements and tax records. The goal is to ensure that the financial statements provide a true and fair view of the company’s financial position and that the organization complies with tax laws and regulatory requirements. Statutory audits are required by law, typically for corporations and public companies, and are conducted by independent external auditors.
Here’s an in-depth look at statutory audits in the context of tax services:
Purpose of a Statutory Audit
The primary purpose of a statutory audit is to provide stakeholders, including shareholders, regulatory bodies, and tax authorities, with confidence that the financial statements are accurate, transparent, and comply with financial and tax regulations.
Statutory audits aim to detect and prevent errors, fraud, and non-compliance with financial and tax laws. The audit helps ensure that the company is reporting its financial status truthfully, which can impact tax assessments and obligations.
Frequently Asked Questions
Examples of Statutory Reports
Statutory Report submitted at the statutory meeting of the company.
Directors' Report to the Annual General Meeting.
Annual Return.
Auditors' Report.
Reports by Inspectors appointed to investigate the affairs of the company.A statutory audit is a mandatory audit of a company's financial records by an external entity. This audit is mandated by statute or law that governs an organization's principles and ethics.
All companies (Private Limited Company, One Person Company, Limited Company, Section 8 Company, Nidhi Company, Producer Company), irrespective of nature of business and sales turnover must appoint a Statutory Auditor.
A statutory audit is intended to determine if an organisation delivers an honest and accurate representation of its financial position by evaluating information, such as bank balances, financial transactions, and accounting records.
