Statutory Audit
Independent audit opinion on financial statements under the Companies Act 2013
Ashish Jayalata & Associates conducts statutory audits of companies and LLPs in accordance with the Companies Act 2013 and the applicable Standards on Auditing (SA 200–999). The audit provides an independent opinion on whether the financial statements give a true and fair view of the state of affairs of the entity and are in compliance with applicable financial reporting frameworks and statutory requirements.
What This Includes
- Financial Statement Audit: Audit of the balance sheet, profit and loss account, cash flow statement, and notes to accounts prepared under Schedule III of the Companies Act 2013 or Ind AS, as applicable.
- CARO Reporting: Auditor's report on matters specified under the Companies (Auditor's Report) Order, 2020 (CARO 2020), including going concern assessment, internal financial controls, loans and advances, related party transactions, and compliance with statutory provisions.
- SA Compliance: Conduct of the audit in accordance with applicable Standards on Auditing — from SA 200 (Overall Objectives) through SA 260 (Communicating with Those Charged with Governance), SA 315 (Risk Assessment), SA 330 (Responses to Assessed Risks), SA 500 (Audit Evidence), SA 520 (Analytical Procedures), SA 540 (Estimates), and others as relevant.
- Internal Financial Controls Assessment: Evaluation of the design and operating effectiveness of internal financial controls (IFC) over financial reporting, as required under Section 143(3)(i) of the Companies Act 2013.
- Board & Audit Committee Reporting: Reporting to the Board of Directors and Audit Committee on audit findings, qualifications (if any), emphasis of matter paragraphs, and other matters prescribed under Section 143(3).
- LLP Audit: Statutory audit of Limited Liability Partnerships (LLPs) under Section 34 of the Limited Liability Partnership Act, 2008, read with Rule 53 of the LLP Rules, 2009.
- Partnership Firm Audit: Audit of partnership firm accounts where required under any law or agreement, including firms with turnover exceeding the prescribed threshold under the Income Tax Act.
Who It's For
Statutory audit is applicable to all companies incorporated under the Companies Act 2013 — including private limited companies, public limited companies, one-person companies (OPCs), and companies limited by guarantee. LLPs with turnover exceeding ₹40 crore or contribution exceeding ₹25 crore are also required to get their accounts audited. Additionally, partnership firms may require audit under specific conditions.
Our Process
1
Enquiry & Engagement — Understanding the entity's business, industry, and financial reporting requirements. Issuance of engagement letter with terms of reference.
2
Understanding the Entity & Risk Assessment — Studying the entity's internal controls, accounting policies, and significant transactions. Identifying areas of audit risk through analytical procedures and inquiry.
3
Audit Procedures & Fieldwork — Testing of transactions and balances through substantive procedures (verification of assets, liabilities, income, expenses) and tests of controls (where reliance is placed on internal controls).
4
Reporting & Finalization — Preparation of the auditor's report with opinion on the financial statements, CARO report, report to the Audit Committee, and communication with those charged with governance. Finalization of financial statements with management.
Documents Required
- Financial statements for the audit period (balance sheet, P&L, cash flow statement)
- Board meeting minutes and resolutions
- Bank statements and bank reconciliation statements
- Statutory registers (register of members, register of directors, etc.)
- Previous year's audit report and financial statements
- Invoices — sales, purchases, and significant expenses
- Fixed asset register and depreciation schedule
- Loans and borrowings agreements
- Related party transaction records
Frequently Asked Questions
Which companies need a statutory audit?
Every company registered under the Companies Act 2013 must appoint an auditor and have its financial statements audited each year, regardless of turnover. LLPs with turnover above ₹40 lakh or capital contribution above ₹25 lakh, and trusts whose income exceeds prescribed limits, may also need an audit under applicable law.
How does a statutory audit work?
We plan the audit, review your books and supporting documents, test internal controls, and verify balances with third parties such as banks and debtors. We then prepare the audit report in the prescribed format and present it to the board. The Companies Act timelines — a maximum of 180 days between the financial year-end and the AGM — are tracked by us.
How much does a statutory audit cost in Sahibabad?
Statutory audit fees depend on the size of the company, number of transactions, number of locations, and the complexity of your accounts. We give a fixed quote after understanding your business. Because the statutory audit is a legal requirement, we complete it in time for the Companies Act filing deadlines.
What documents do I need for a company audit?
We need the trial balance, books of accounts, bank statements, statutory registers, minutes of board meetings, loan and investment agreements, and details of related parties. If it is your first audit, incorporation documents and share certificates are also needed. A detailed checklist is shared once we are appointed.
What is included in your audit report?
The audit report includes our opinion on whether the financial statements give a true and fair view, the basis of that opinion, key audit matters where applicable, and observations on matters like internal financial controls. We also help with the connected annual filings such as MGT-7/AOC-4 where required.
When should the auditor be appointed for a new company?
Under the Companies Act 2013, the first auditor of a company must be appointed within 30 days of incorporation by the board, and the appointment is confirmed by members at the first AGM. Subsequent auditors are appointed at each AGM to hold office until the next. We guide you through the appointment and filing of Form ADT-1.
Need help with statutory audit in Ghaziabad, Sahibabad, or NCR? Contact the office to discuss your requirement.
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