Statutory Audit

STATUTORY AUDIT SERVICES

Along with the globalization and ever-increasing regulatory requirements, companies need to be dynamic and transparent in the business to create a trustworthy image in the minds of stakeholders.

The financial statements of the company should provide the required clarity, quality, and create an environment of trust in the mind of readers. The statutory auditors at GRC Solutions possess a thorough knowledge of regulatory requirements, business challenges, and technical knowledge of local and international accounting and auditing standards to provide the top class statutory audit services. We believe in adding value by carrying out auditing in accordance with the regulatory requirements in a free and fair manner to bring transparency into the financial statements of the companies through our external audit services.

WHAT IS STATUTORY AUDIT

Statutory audit, also known as external audit, is a type of audit that is mandated by a specific statute or law to make sure that the financial statements of the entities represent a true and fair view of its state of affairs and profitability. Statutory audit is governed by the Companies Act, 2017.

The scope of the statutory audit mainly depends upon the guidelines and regulations set by the government. The financial statements and the accounts of the organization are scrutinized to avoid discrepancies or any possible misrepresentation and ensure reliability.

INTERNAL AUDIT AND STATUTORY AUDIT

Statutory audit differs from internal audit in the sense that the statutory auditor is appointed by the stakeholders, whereas the internal auditor is appointed by the company management. The scope of the work in the statutory audit is decided by the law to check if the company’s financials represent a true and fair view. Internal audit, on the other hand, is done as per the scope decided by the management to improve operational efficiencies.

BENEFITS OF A STATUTORY AUDIT

• It enhances the credibility and authenticity of your financial statements because an independent statutory auditor does the audit.

• While it confirms that the firm’s financials represent a true and fair view of its state of affairs and profitability, it also helps in assessing the areas prone to risk and losses.

• The external audit helps in securing finance from financial institutions as it makes their financial statements more authentic and reliable.

• External auditors also provide valuable insights that can help a business improve in several areas and achieve higher profitability and growth. It also helps in identifying and strengthening internal control deficiencies.