- Statutory Audit is the audit made compulsory by the law (Section 139 of the Companies Act).
- It is carried out by a Chartered Accountant in Practice subject to eligibility, Qualification & Disqualification stated in Section 141 of the Companies Act 2013.
- Auditor is required to comply with the Accounting Standards in force.
- The purpose is to ensure reliability and transparency of financial statement.
- Internal Audit is a compliance test as stated in Section 138 of the Act for the companies or classes of companies which comes under the purview of the thresholds stated therein.
- The said companies have to perform Internal Audit on a regular basis.
- The Internal Auditor is required to be appointed. It may be a Chartered Accountant, a Cost Accountant or any other professional as may be decided.
- Some Benefits that it offers: Helping protect assets and reduce the possibility of fraud, Improving efficiency in operations, Increasing financial reliability and integrity, Ensuring compliance with laws and statutory regulations & Establishing monitoring procedures.