An overview:

As you have heard the name of many other audits like Tax Audit, Cost Audit, Stock Audit which are governed by the respective laws, Companies Act, 2013 contain the provisions relating to the Statutory Audit.Statutory Audit is the audit of the financial statements of the company that give a true and fair position of the business hence Statutory Audit also known as “Financial Audit”.It is mandatory for every company to carry out the Statutory Audit of its financial statements by the Chartered Accountant(referred as Auditor). Statutory Audit will be done by the Chartered Accountant in Practice. This Audit will determine the accuracy and reliability of the financial statements represented by the company.

Need of Statutory Audit

Mandatory compliance under Companies Act, 2013

It is mandatory for every company to carry out the Statutory Audit of the Company under the Companies Act, 2013.

⇒Levy of Penalty on Company

If the Provisions of the Companies Act, 2013 has not been followed by the company and company does not carry out the statutory audit of the company then company shall be punishable with fine which shall not be less than Rs 25,000 but it may extend to Rs 5 Lacs.

⇒ Levy of Penalty on Officer of Company

Every officer of the company will also be punished with imprisonment for the period up to 1 year or with fine not less than Rs 10,000 but may extend up to Rs 1 Lac.

Penalty for Non-Compliance of Statutory Audit

Due Date for Statutory Audit

As such there is no time limit mentioned for carrying out the Statutory Audit under the Companies Act, 2013. However, Companies have to place the audited financial statements before the Annual General Meeting (AGM) of the Company. Now AGM shall be held within 6 months from the closure of the financial year i.e. 30th September. Thereby Statutory Audit shall need to be completed on or before the 30th September itself.

Benefits of Statutory Audit

Detection of Frauds and Errors

Statutory Audit will help the company to early detect any error or frauds which may cause company to incur huge losses in future.

Financial Benefits

Creditors and Banks takes decisions while granting loans to companies depending on their Audited Financial Statements.

Value of the Business

Statutory Audit helps the company to know the value of the business in the market.

Useful for Shareholders

As shareholders are not involved in day- to- day management of the Company, audited financial statements gives the true and fair indication of how the company is performing and is it worth to continue to invest in the company.


Documents Required
  • Books of Accounts of the Assessee
  • Preceding Financial Year Balance Sheet
  • Preceding Financial Year Profit and Loss Account
  • TDS Returns and challans
  • ESI returns and challans
  • EPF returns and challans
  • Other Documents if applicable
Details Required
  1. Nature of Business
  2. Business Activity
  3. Other details, if applicable

Process of Company Registration

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Documents & Details required for company incorporation in very simple terms
Documents Required
  • Bank Statement
  • Electricity Bill
  • Telephone Bill
  • Mobile Bill
  • Passport
  • Driving License
  • Voter’s Identity Card
  •  Electricity Bill or
  • Telephone Bill
  • (Not older than 2 Month)
Details Required
  1. Company Name
  2. Company Email Id and Phone No
  3. Business Activity
  4. Directors Name
  5. Shareholders Name
  6. All Directors and Shareholders Details:
  • Email ID and Mobile Number
  • Place of Birth (District & State)
  • Nationality
  • Qualification
  • Current Employment: Salaried/ Businessman/ Other
  • Duration of Stay at Present Address
  • Capital Amount
financial accounting


  • Auditor’s Report

  • Audit of the Financial Statements

  • MGT-9 (Extract of Annual Return)

  • Audited Balance Sheet

  • Audited Profit and Loss Account

  • Notes of Accounting Policies

    Notes of Accounting Policies

  • Board Report