Practice Areas · Compliance · Audit & Advisory · Audit & assurance · Statutory audit
Statutory / Financial Audit
The independent audit of financial statements required by law for companies and certain other entities.
What a statutory audit is
A statutory audit is the independent examination of an entity's financial statements, required by law, leading to an opinion on whether they give a true and fair view and comply with the applicable framework. For companies it is mandatory every year under the Companies Act, 2013, regardless of turnover or profit.
The audit is conducted by a Chartered Accountant in practice, following the Standards on Auditing issued by the ICAI, and the report is laid before the members at the annual general meeting.
Who must have a statutory audit
Always required
- Every company — private, public, OPC, Section 8 — under the Companies Act, 2013
- Every LLP whose turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh
Under other statutes
- Banks, co-operative societies, and trusts, under their governing laws
- Entities whose own regulators or lenders require audited accounts
What the audit covers
Financial statements
Balance sheet, statement of profit and loss, cash flow, and notes, against Schedule III and the accounting standards.
Internal financial controls
For applicable companies, an opinion on the adequacy and operating effectiveness of internal financial controls.
Compliance reporting
CARO 2020 matters and the disclosures the Act and rules require in the audit report.
Substantive testing
Verification of balances, transactions, and disclosures on a risk-based, sampling approach.
How we conduct it
- 01
Planning & risk assessment
Understand the business, assess risks, and set materiality and the audit strategy.
- 02
Controls evaluation
Test the design and operation of the controls relevant to the financial statements.
- 03
Substantive procedures
Verify balances and transactions through inspection, confirmation, and analytical review.
- 04
Conclusion & reporting
Resolve findings with management, form the opinion, and issue the audit report for the AGM.
Why work with PBT
PBT brings an independent, standards-driven audit that adds credibility — not just a signature.
- Audits conducted to the ICAI Standards on Auditing, with proper documentation
- A risk-based approach focused on what matters to your statements
- Clear communication of findings and practical recommendations on controls
- Timely completion to meet your AGM and filing deadlines
- Scope, deliverables, and fees agreed in writing up front
Frequently asked questions
Is a statutory audit compulsory even if my company is dormant or loss-making?
Yes. Every company must have its accounts audited each year regardless of turnover, profit, or activity.
Who can sign a statutory audit report?
Only a Chartered Accountant in practice (or a firm of CAs) appointed as auditor under Section 139 of the Companies Act.
What is the difference between a statutory audit and a tax audit?
A statutory audit is under the Companies Act and opines on the financial statements; a tax audit is under Section 44AB of the Income-tax Act and reports prescribed particulars in Form 3CD.
How long does it take?
It depends on the size and state of the records — a small company may take one to two weeks, larger entities longer. We agree a timeline against your AGM and filing dates at the outset.
Plan your statutory audit
Tell us about your company and your filing deadlines, and we'll scope the audit and agree a timeline.
Send an enquiryThis page describes the nature of the firm's services and is not a solicitation or legal advice. Thresholds, timelines, and applicable registrations depend on your specific facts; engagement terms and fees are agreed in writing per assignment.