What are the steps to statutory audit?
What Is The Process Of A Statutory Audit In India?
- Assets. The auditor should physically visit and verify the fixed assets.
- Inventories. The auditor must physically verify the inventories of the company.
- Loans.
- Deposits.
- Statutory Dues.
- Profit and Loss.
- Other Dues and Payments.
- Loan Usage.
What do we do in statutory audit?
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.
What are the 5 audit procedures?
Typically, five types of audit procedures normally use by auditors to obtain audit evidence. Those five audit procedures include Analytical review, inquiry, observation, inspection, and recalculation.
How do companies conduct statutory audit?
Given below are theimportant areas of consideration one has to look into while conducting the statutory audit of a company:
- Research the control environment of the organisation.
- Testing of Internal Controls.
- Audit of Balance Sheet.
- Audit of Profit & Loss Account.
- Audit of GST.
- Audit of TDS.
- Some other important checks:
What should be check in statutory audit?
Check any expenditure of capital nature charge in revenue expenses. Check whether GST tax input claim on any expenses. Check such input claim in GST return in GSTR 3b. Identify the expenses which are disallowed under Income Tax Act, 1961.
What is the limit for statutory audit?
1. For LLP: Statutory audit is applicable if turnover in any financial year exceeds Rs. 40 Lakhs or its contribution exceeds Rs. 25 Lakhs.
Who performs statutory audit?
Who can conduct a statutory audit? As per the law, only an independent chartered accountant, or a chartered accountant firm, or limited liability partnership firm (LLP) with majority of partners practicing in India are qualified for appointment as an auditor of a company.
What are the 8 audit procedures?
8 Types of Audit Procedures
- Analytical procedures. Performing analytical procedures is one the most basic yet among the most powerful tools that auditors have at their disposal.
- Confirmations.
- Inquiry.
- Inspecting records or documents.
- Inspecting assets.
- Observation.
- Recalculation.
- Reperformance.
What are the 6 audit procedures?
What are Audit Procedures?
- Completeness Testing. Audit procedures can test to see if any transactions are missing from the accounting records.
- Cutoff Testing.
- Occurrence Testing.
- Existence Testing.
- Rights and Obligations Testing.
- Valuation Testing.
Who appoints statutory auditor?
Appointed by the Comptroller and Auditor General of India. This has to be done within 60 days from the date of Registration. Appointment can also be done by Board Of Directors within 30 days of incorporation. Members can also appoint at an Extraordinary General Meeting within 60 days of Information.
How do you do a statutory audit of manufacturing company?
Statutory Audit checklist for Manufacturing Company:
- Inventory Observation. As per most of the auditing standards require auditors to physically observe the company’s inventory count procedures and make their own independent tests of the physical count of inventory.
- Price Testing.
- Control Testing.
- Inventory Reserve Testing.
Who qualifies for statutory audit?
A statutory auditor of a company is a person appointed to verify the correctness of the accounting records of the company. As per the Companies Act, 2013, only a practising Chartered Accountant (CA) is eligible to be appointed as the statutory auditor in a company.