As per company’s act 2013, Statutory Audit is used to denote the audit is required by statute (law). A statute regulation enacted by the legislative branch of the organizations associated with Government. Statutes can be enacted at multiple levels including federal, state or other municipality.
A statutory audit is a legally required review of the accuracy of a company’s or government’s financial records. The purpose of a statutory audit is the same as the purpose of any other audit – to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records and financial transactions.
The chief responsibility of statutory auditors is to perform the process of annual statutory audit of the company’s financial accounts, providing opinions if they are an impartial and fair reflection of the company’s financial position.