Quick Answer
Statutory Audit India is a mandatory examination of a company's financial records and statements as required by the Companies Act, 2013. Every company registered under the Act must have its annual accounts audited by a qualified auditor to ensure accuracy and compliance with accounting standards.
Statutory Audit — detailed explanation below
Governing Act — Statutory Audit India
The primary legislation governing Statutory Audit India is the Companies Act, 2013. Key sections include Section 139 (appointment of auditor), Section 143 (duties and powers of auditor), and Section 144 (auditor not to render certain services). The audit must be conducted in accordance with the Standards on Auditing (SAs) issued by the Institute of Chartered Accountants of India (ICAI).
Government Department & Website for Statutory Audit India
The Ministry of Corporate Affairs (MCA) is the government department responsible for corporate regulation in India. The MCA portal (www.mca.gov.in) is used for filing annual returns and financial statements. The audit report must be filed in e-Form AOC-4 (for financial statements) and e-Form MGT-7 (for annual return) within prescribed timelines.
Statutory Audit India Application Process
The process for Statutory Audit India involves the following steps:
- Appointment of Auditor: The company appoints an auditor at the first Annual General Meeting (AGM) who holds office until the conclusion of the sixth AGM.
- Audit Planning: The auditor plans the audit scope, identifies key areas, and gathers necessary documents.
- Fieldwork: The auditor examines financial records, verifies assets and liabilities, and tests internal controls.
- Reporting: The auditor issues an audit report expressing an opinion on the financial statements. The report is then filed with the MCA.
Key Forms Required for Statutory Audit India
The key forms for Statutory Audit India include:
- e-Form AOC-4: Filing of financial statements (balance sheet, profit and loss account, etc.)
- e-Form MGT-7: Filing of annual return
- e-Form ADT-1: Appointment of auditor (if applicable)
- e-Form ADT-2: Resignation of auditor (if applicable)
- e-Form ADT-3: Cessation of auditor (if applicable)
Eligibility Criteria for Statutory Audit India
All companies registered under the Companies Act, 2013 are required to undergo a statutory audit. This includes private limited companies, public limited companies, one-person companies, and section 8 companies. Small companies may be exempt from certain audit requirements but still need to file audited financial statements if they exceed prescribed thresholds.
Timeline for Statutory Audit India
The statutory audit must be completed within six months from the end of the financial year (i.e., by September 30 for companies following the April-March financial year). The audit report must be filed with the MCA within 30 days of the AGM. No specific timeline is provided here as it varies based on company size and complexity.
Fees for Statutory Audit India
The fees for statutory audit are determined by the auditor based on the scope of work and are not prescribed by the government. However, the MCA filing fees for annual forms are as follows:
| Form | Fee (INR) |
|---|---|
| AOC-4 | Based on authorized capital (e.g., up to ₹1 lakh: ₹200; above ₹5 crore: ₹6,000) |
| MGT-7 | Based on authorized capital (e.g., up to ₹1 lakh: ₹200; above ₹5 crore: ₹6,000) |
| ADT-1 | ₹500 |
Note: These are government filing fees only. Auditor fees are separate and negotiable.
Frequently Asked Questions
What is Statutory Audit India?
Statutory Audit India is a mandatory audit of a company's financial records as required by the Companies Act, 2013. It ensures that the financial statements present a true and fair view of the company's financial position.
Who is required to conduct a Statutory Audit India?
All companies registered under the Companies Act, 2013 must conduct a statutory audit. This includes private limited, public limited, one-person, and section 8 companies.
What are the penalties for non-compliance with Statutory Audit India?
Failure to conduct a statutory audit or file audit reports can result in penalties under the Companies Act, 2013, including fines up to ₹5 lakh for the company and imprisonment for officers in default.
How long does a Statutory Audit India take?
The duration varies based on company size and complexity. Generally, it takes 2-4 months to complete the audit and file reports. No specific timeline is guaranteed.
Can a company change its auditor during the year for Statutory Audit India?
Yes, a company can change its auditor by following the procedure under Section 140 of the Companies Act, 2013, which requires special resolution and approval from the Central Government in certain cases.
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