Statutory Audit

Statutory Audit


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Statutory Audit

A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records. The purpose of a statutory audit is to determine whether an organization provides a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records, and financial transactions.

The term statutory denotes that the audit is required by statute. A statute is a law or regulation enacted by the legislative branch of the organization’s associated government. Statutes can be enacted at multiple levels including federal, state, or municipal. In business, a statute also refers to any rule set by the organization’s leadership team or board of directors.

An audit is an examination of records held by an organization, business, government entity, or individual. This generally involves the analysis of various financial records or other areas. During a financial audit, an organization’s records regarding income or profit, investment returns, expenses, and other items may be included as part of the audit process. Several of these items are also used when calculating a combined ratio.

The purpose of a financial audit is often to determine if funds were handled properly and that all required records and filings are accurate. At the beginning of an audit, the auditing entity makes known what records will be required as part of the examination. The information is gathered and supplied as requested, allowing the auditors to perform their analysis. If inaccuracies are found, appropriate consequences may apply.

Being subject to a statutory audit is not an inherent sign of wrongdoing. Instead, it is often a formality designed to help prevent activities such as the misappropriation of funds by ensuring regular examination of various records by a competent third party. The same also applies to other types of audits.

Nagpal & Nagpal Chartered accountants provides specialized services in Statutory Audit in the following

Preparation of financial statements: We recognizes the management’s needs for submitting timely financial statements with conformity to the industry practices and rules and regulations. We assist our clients by helping them prepare financial statements that reflect the client’s fair and transparent dealings while conducting any business transactions. The company assists in preparing financial statements like Cash Flow statement, Profit and Loss Account and Balance sheet for our clients.

Financial review: We help in identifying the strengths and weaknesses of the financial accounting procedures and systems of our clients. The deficiencies are addressed by suggesting suitable measures for improvement that ensure quality while meeting the industry accounting standards.

Tax related issues: We advises companies on various issues related to complicated tax regulations that can have financial implications for the companies. The main objective is to minimize any tax burden for the company allowing them to experience a greater control of their financial position and performance as a stakeholder.

Industries we have worked for