Is Statutory Audit And External Audit Same?

What is the difference between internal and external audit?

Internal auditors are company employees, while external auditors work for an outside audit firm.

Internal auditors will examine issues related to company business practices and risks, while external auditors examine the financial records and issue an opinion regarding the financial statements of the company..

What are the features of statutory audit?

Salient Features of Statutory AuditStatutory audit has been made compulsory bylaw.Its scope is also determined by the law. … The Companies Act, 1956 has prescribed qualifications for a statutory auditor. … Similarly the law has also laid down the rights, duties and liabilities of the statutory auditor.More items…

What is meant by a statutory body?

Statutory bodies are established by acts which Parliament and State Legislatures can pass. These bodies are entities shaped by an Act of Parliament or state legislatures and set up by the government to consider the data and make judgments in some area of activity.

Which is better internal audit or statutory audit?

In my opinion and to the best of my knowledge and belief, Statutory audits are better. … Internal Audits be broadly classified as Financial Audit and Operational Audit. While Statutory Audit here refer to audit of financial statements.

What do we do in statutory audit?

A statutory audit can be defined as a legally required review that is performed to check the overall accuracy of a company’s financial records and statements. … It is performed by closely examining accounting information from bookkeeping records, bank balances and financial transactions.

What is meant by 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.

Who is liable for statutory audit?

Meanwhile, a limited liability partnership (LLP) has to undergo a statutory audit only if its turnover in any financial year exceeds INR 4 million (US$55,945) or its capital contribution exceeds INR 2.5 million (US$34,963).

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.

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 the difference between statutory audit and external audit?

Statutory audit is an external audit that is conducted by an audit firm or individual external to the organisation. … One of the key differences is that statutory auditors report to the shareholders of the company, whereas internal auditors report to management of the Company.

What is the difference between statutory audit and non statutory audit?

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. … PKF Sejong provides independent audit assurance that is tailored to meet your auditing requirements.

What are the statutory qualifications of an auditor?

Ans: To be eligible as a statutory auditor, the person must be a Chartered Accountant, i.e. a member of the ICAI. In case of a firm, the majority of its members must be chartered accountants in their own right. Then the firm can be eligible to be in charge of a statutory audit of a company.

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.

What is the turnover limit for statutory audit?

The Act states that if the turnover of any enterprise is more than 1 crore, and in case of professionals if the value of services is more than Rs. 50 lacs then they have to get their books of accounts audited by a Chartered Accountant.

Which is better internal or external audit?

While external auditors provide assurance largely to shareholders and/or members, internal auditors deliver their reports to board members and other senior managers. … Second, frequent interaction with senior management offers better opportunities to fast-track your career.

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.

What are the two types of auditors?

What are the different types of auditors?External Auditor: The most common type of auditor is the external auditor. … Government Auditor: Government Auditors are those who audit the financial position of Government agencies and private businesses involved in activities pertaining to government regulations, taxation, foreign exchange, etc.Internal Auditors:More items…•

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.

What are the advantages of statutory audit?

The following benefits are offered by a statutory audit:It assures the management that their duties in statutory performed perfectly.Statutory audit improves the reliability of the published financial statement.It provides internal control’s efficiency.More items…•

Which audit is not a 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.

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…•