Complete Statutory Audit Guide

Prepare your accounts, schedules and financial statements before audit and annual ROC filing deadlines.

Statutory audit requires proper books of account, ledgers, reconciliations, fixed asset records, statutory dues, board records, financial statements, disclosures, audit evidence and timely coordination with the auditor.

Statutory Audit Readiness Check

What we review before starting audit work

Statutory audit readiness depends on complete books, bank reconciliations, GST/TDS records, fixed asset register, loan confirmations, debtor-creditor balances, related party details, board records and financial statement disclosures.

Trial balance, ledgers, bank statements, reconciliations and audit schedules.
GST, TDS, PF/ESI, income tax, statutory dues and compliance reconciliation.
Fixed assets, loans, advances, inventory, debtor-creditor confirmations and related-party records.
Financial statement, notes, CARO applicability, board approval and ROC filing readiness.
AuditReadyCAROCheckROCPlan
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    Why Statutory Audit Matters

    Keep your financial statements credible, compliant and ROC-ready.

    Statutory audit is not only a year-end formality. It validates accounts, strengthens governance, supports directors’ reporting, prepares annual filing records and improves confidence for banks, investors, vendors and regulators.

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    Financial Statement Confidence

    Audit helps verify books, balances, disclosures and financial statement presentation.

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    Tax & Statutory Reconciliation

    Review GST, TDS, income tax, payroll dues and statutory payment records before reporting.

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    Board & AGM Readiness

    Prepare audited financials for board approval, AGM adoption and annual ROC filings.

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    Internal Control Review

    Identify accounting gaps, documentation weakness, approvals and process-control issues.

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    Audit Evidence Discipline

    Maintain confirmations, schedules, invoices, contracts and supporting documents cleanly.

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    Compliance Protection

    Timely audit reduces late filing, qualification, mismatch and governance risks.

    Documents Required

    Documents needed for statutory audit.

    The exact list depends on company size, activity, transactions and auditor requirements, but these records are commonly needed for statutory audit.

    Accounting Records

    • Trial balance, ledger and journal entries
    • Bank statements and bank reconciliation statements
    • Sales, purchase, expense and receipt records
    • Fixed asset register and depreciation working
    • Inventory, debtors, creditors and loan schedules

    Compliance Records

    • GST returns, GSTR-2B and tax ledgers
    • TDS returns, challans and Form 26AS/AIS support
    • Income tax, PF, ESIC and professional tax records
    • ROC forms, board minutes and statutory registers
    • Related-party and director transaction details

    Audit Evidence

    • Invoices, agreements, loan confirmations and bank letters
    • Debtor and creditor confirmations where applicable
    • Management representation and disclosure inputs
    • Contingent liability and litigation details
    • Previous audit report and financial statements
    5-Step Process

    How CompanyJi prepares your statutory audit file.

    We focus on accounts cleanup, audit schedules, compliance reconciliation, financial statement preparation and audit coordination.

    01

    Books Review

    We review trial balance, ledgers, bank reconciliation, statutory dues and closing balances.

    02

    Schedule Mapping

    We prepare fixed assets, loans, debtors, creditors, expenses and statutory schedules.

    03

    Compliance Check

    We reconcile GST, TDS, payroll dues, income tax records and ROC compliance points.

    04

    Audit Coordination

    We organise auditor queries, supporting documents, confirmations and management inputs.

    05

    Finalisation

    We support audited financials, board approval, AGM readiness and annual filing handover.

    Compare Before Planning

    Statutory Audit vs Tax Audit vs Internal Audit vs Secretarial Audit.

    Different audits serve different purposes. A company may require one or more depending on legal status, turnover, transactions, governance and regulatory thresholds.

    Audit Type
    Purpose
    Main Benefit
    Key Caution
    Statutory Audit
    Audit of company financial statements
    Supports board, AGM and ROC filing readiness
    Requires proper books, schedules and disclosures
    Tax Audit
    Income tax reporting under tax law
    Focuses on tax reporting, clauses and disallowances
    Applicability depends on turnover/profit provisions
    Internal Audit
    Review of internal controls and processes
    Improves governance and operational discipline
    Scope should be clearly defined
    Secretarial Audit
    Corporate law and secretarial compliance review
    Checks board, ROC, governance and legal compliance
    Applicable to specified companies only
    Everything you need to know

    Statutory Audit FAQs

    Category-wise answers covering audit basics, applicability, documents, audit process, reporting, CARO, tax reconciliation, timelines, penalties and common audit mistakes.

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    Basics

    Important statutory audit guidance.

    What is statutory audit?+

    Statutory audit is the legally required audit of financial statements by an auditor to report whether accounts present a true and fair view.

    Is statutory audit mandatory for companies?+

    Companies generally require statutory audit under company law, even where turnover is low or business activity is limited.

    Who conducts statutory audit?+

    A statutory auditor, usually a Chartered Accountant or audit firm appointed as auditor, conducts the audit and signs the audit report.

    Is statutory audit same as tax audit?+

    No. Statutory audit is under company law, while tax audit is under income tax law and depends on tax-specific thresholds.

    Can a dormant company require audit?+

    Even inactive or low-activity companies may need audit and annual compliance unless exempt under specific rules.

    Applicability

    Who needs statutory audit.

    Which entities need statutory audit?+

    Companies generally require statutory audit, while LLPs, firms and other entities may require audit based on their governing law or thresholds.

    Does a private limited company need audit?+

    Yes. Private limited companies normally require statutory audit and audited financial statements for annual filings.

    Does a public limited company need audit?+

    Yes. Public limited companies require statutory audit and may have additional governance and reporting requirements.

    Is audit required before ROC filing?+

    Annual financial statements are generally audited before board approval, AGM adoption and ROC filing.

    Can CompanyJi check audit applicability?+

    Yes. CompanyJi can review entity type, turnover, structure and applicable laws to map audit and filing obligations.

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    Documents

    Records commonly required.

    What documents are required for statutory audit?+

    Trial balance, ledgers, bank statements, invoices, reconciliations, statutory dues, fixed assets, confirmations and financial statements are commonly required.

    Are bank confirmations required?+

    Bank confirmations may be requested by auditors depending on audit approach and account balances.

    Are debtor and creditor confirmations needed?+

    Confirmations may be required for material balances or where auditor wants external evidence.

    Is fixed asset register required?+

    Yes. Fixed asset register and depreciation workings are important for audit and financial statement reporting.

    Are board minutes reviewed?+

    Board minutes and approvals may be reviewed for loans, related-party transactions, financial approval and compliance support.

    Process

    How statutory audit moves.

    How does CompanyJi start statutory audit support?+

    CompanyJi reviews books, balances, reconciliations, statutory records and pending schedules before coordinating audit readiness.

    How long does statutory audit take?+

    Timeline depends on books quality, transaction volume, document readiness, auditor queries and financial statement finalisation.

    Can audit start before year-end closing?+

    Pre-audit review can start before finalisation to identify gaps, missing documents and reconciliation issues.

    Can audit queries be managed centrally?+

    Yes. A query tracker can help manage audit points, documents, explanations and closure status.

    What happens after audit report?+

    Audited financials are used for board approval, AGM, income tax return and ROC annual filing.

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    Reporting

    Audit report and financial statements.

    What is an audit report?+

    An audit report is the auditor’s opinion on the company’s financial statements and related reporting matters.

    What is qualified audit report?+

    A qualified report indicates the auditor found certain matters requiring modification or qualification of opinion.

    Are notes to accounts important?+

    Yes. Notes explain accounting policies, disclosures, balances and statutory reporting requirements.

    Does auditor check internal controls?+

    Auditors may review internal financial controls and process risks depending on company applicability and audit scope.

    Are director disclosures required?+

    Director disclosures, related-party details and governance records are often relevant for audit and board reporting.

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    Tax

    Tax and statutory dues review.

    Does statutory audit include GST review?+

    Audit may review GST balances, returns, input credit, liabilities and reconciliation with books where material.

    Does audit include TDS reconciliation?+

    Yes. TDS payable, deposited and return filing records may be reviewed as part of statutory dues.

    Is income tax provision checked?+

    Tax provision, deferred tax and related financial statement disclosures may be reviewed by the auditor.

    Are PF and ESIC dues checked?+

    Payroll statutory dues may be checked where applicable, including payment and return filing status.

    Can unpaid statutory dues affect audit?+

    Yes. Unpaid or delayed statutory dues can require disclosure and may attract auditor attention.

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    CARO

    CARO and special reporting.

    What is CARO?+

    CARO is Companies Auditor’s Report Order reporting applicable to specified companies, requiring additional auditor comments on prescribed matters.

    Is CARO applicable to all companies?+

    No. CARO applicability depends on company type, exemptions and thresholds.

    What records are needed for CARO?+

    Fixed asset records, loans, statutory dues, inventory, deposits, fraud checks and other prescribed information may be needed.

    Can CARO issues delay audit?+

    Yes. Missing CARO evidence or unresolved matters can delay audit closure or create report comments.

    Can CompanyJi check CARO readiness?+

    Yes. CompanyJi can help prepare CARO-related schedules and document readiness checklist.

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    Timelines

    Audit timing and filing connection.

    When should statutory audit start?+

    Audit planning should start soon after year-end closing so financials, board approval, AGM and filings are not delayed.

    Is audit linked with AGM?+

    Audited financial statements are generally placed before members at AGM for adoption.

    Is audit linked with AOC-4?+

    Yes. AOC-4 filing is based on approved financial statements and audit report.

    Can audit delay ROC filing?+

    Yes. Delayed audit finalisation may delay board approval, AGM, AOC-4 and annual return filings.

    Can CompanyJi track audit timeline?+

    Yes. CompanyJi can help track audit, AGM, income tax and ROC filing timeline.

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    Mistakes

    Common statutory audit mistakes.

    What is the biggest statutory audit mistake?+

    The biggest mistake is starting audit with incomplete books, unreconciled balances and missing supporting documents.

    Can unreconciled GST create audit issues?+

    Yes. GST mismatches with books can create audit questions and financial statement adjustments.

    Is missing fixed asset register risky?+

    Yes. Fixed asset records are important for depreciation, CARO and financial statement support.

    Can late auditor appointment cause issues?+

    Auditor appointment and related filings should be handled on time to avoid compliance gaps.

    Can poor documentation lead to qualification?+

    Poor evidence, unresolved balances or non-compliance can increase the risk of audit observations or qualification.

    Make your statutory audit review-ready and ROC-ready.

    Before audit delays, unreconciled balances, CARO gaps, statutory dues mismatch or annual filing pressure affect your company, prepare a clean statutory audit file with CompanyJi’s structured audit support.