Quick Answer: Which Audit Is Not A Statutory Audit?

What comes under statutory audit?

A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records.

Firms that are subject to audits include public companies, banks, brokerage and investment firms, and insurance companies..

Is statutory audit compulsory?

Statutory Audit as the name suggests is a compulsory audit for all companies. Every entity which is registered under the Companies Act, as a Private Limited or a Public Limited company has to get its books of accounts audited every year. This type of audit is not conditional, it depends upon the entity type.

What are the examples of non statutory record?

Non-statutory records are of private use to schools that find them useful. These include: cash book, stock book, punishment book, school calanedar, inventory book, staff minutes book, school magazine, inspection/supervision report file, confidential report forms and requisition book.

Who are the auditors?

An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws.

How do I start a statutory audit?

1) First you examine Documentary Evidences regarding appointment/reappointment of an Auditor. 2) Examine Last Year’s copy of Audited Balance sheet, profit & loss account , schedules, notes on accounts along with 3CA/3CB, 3CD & Audit Report. 3) Carefully Examine the internal control system of the company.

Which audit is not statutory audit?

The non-statutory audit is the audit of financial statements that are not required by law. It is different from the statutory audit that the entity needs to engage with an audit firm to perform its review in financial statements.

Is statutory audit and external audit same?

Statutory Auditors are a part of the external audit process are focused on the various financial accounts or risks associated with the domain of finance and are appointed by the shareholders of the company. … The external audit is related to the reports on financial statements of the corporate entity.

What are the advantages of non statutory audit?

Since nonstatutory audits are at the discretion of the business, they can have several advantages.Flexibility in Reports. Nonstatutory audits are not limited to financial reporting; they can cover any area of the business. … Consulting Services. … Flexibility in Advisors. … Verification.

What is a non statutory audit?

Non-statutory audit is a type of audit which is not legally required. While statutory audits are primarily concerned with financial activities, non-statutory audits are not limited to financial reporting. A non-statutory audit can be conducted for any function of an organization.

What are the 3 types of audits?

What Is an Audit?There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits.External audits are commonly performed by Certified Public Accounting (CPA) firms and result in an auditor’s opinion which is included in the audit report.More items…•

How do I get a bank statutory audit?

The following procedure will be followed for appointment of Statutory Branch Auditors (SBAs) in Public Sector Banks (PSBs): The list of eligible auditors/audit firms will be prepared by the Institute of Chartered Accountants of India (ICAI) as per the norms prescribed by RBI.

What is the difference between concurrent audit and statutory audit?

A statutory audit is one required by a country’s laws, sometimes called an external audit, since it is carried out by independent external auditors. … The concurrent audit serves the purpose of effective control as it is normally conducted by external agencies.

What are non statutory financial statements?

‘Non-statutory accounts’ are accounts or other published financial information that are not the company’s statutory accounts (e.g. simplified accounting information such as an account in any form claiming to be a balance sheet or profit and loss account relating to the financial year of a company or group).

What is statutory audit in banks?

Updated on – 12:39:33 PM. Statutory Audit is a type of audit which is mandated by a Law or a Statute to ensure the books of accounts presented to the regulators and public are true and fair. Statutory audit is mandatory if certain criteria are being met by the business.