STATUTORY AUDIT ASSISTANCE

Statutory Audit Assistance

Statutory Audit Assistance refers to professional support provided to businesses in preparing for and complying with statutory audit requirements prescribed under applicable laws in India. A statutory audit is a legally mandated examination of an entity’s financial records to verify whether financial statements present a true and fair view and comply with relevant legal and accounting standards.

Statutory audits are required for certain classes of entities based on their legal structure, turnover, capital, or regulatory applicability. Audit requirements arise primarily under the Companies Act, 2013, Income Tax Act, 1961, and other applicable statutes.

At Syntrix Consulting , we assist businesses with statutory audit assistance by supporting documentation, coordination, and procedural compliance in line with applicable audit and regulatory requirements.

Understanding Statutory Audit

A statutory audit is conducted by an independent auditor appointed as per law to examine an entity’s books of accounts, financial statements, and supporting records. The purpose of the audit is to ensure that financial information is prepared in accordance with prescribed accounting standards and statutory provisions.

Statutory audit assistance does not replace the role of the auditor; instead, it supports the audit process by ensuring readiness, accuracy of records, and structured coordination.

Applicability of Statutory Audit

Statutory audit requirements apply to various entities, including:

Companies registered under the Companies Act, 2013

Limited Liability Partnerships (LLPs) exceeding prescribed thresholds

Businesses subject to tax audit under the Income Tax Act

Entities governed by sector-specific audit requirements

Organisations mandated by regulators or governing bodies

Applicability depends on factors such as entity type, turnover, contribution, and statutory thresholds.

Legal and Regulatory Framework

Statutory audits and related assistance are governed by:

Companies Act, 2013

Income Tax Act, 1961

LLP Act, 2008

Applicable Accounting Standards (AS / Ind AS)

Rules and guidelines issued by regulatory authorities

Audits are conducted by Chartered Accountants appointed in accordance with statutory provisions.

Scope of Statutory Audit Assistance

Statutory audit assistance focuses on supporting the audit process through preparation, coordination, and compliance alignment.

Key Segments of Statutory Audit Assistance

Audit Planning & Readiness Support

This segment focuses on preparing the organisation for statutory audit.

Includes:

Review of audit applicability

Preparation of audit checklists

Identification of required records and schedules

Alignment of books of accounts for audit review

Accounting Records & Documentation Support

Accurate documentation is essential for statutory audits.

Includes:

Verification of books of accounts

Compilation of ledgers and journals

Preparation of supporting vouchers and documents

Review of accounting entries for consistency

Financial Statement Review Support

Statutory audits are based on reviewed financial statements.

Includes:

Review of balance sheet and profit & loss account

Verification of schedules and notes to accounts

Alignment with applicable accounting standards

Cross-checking with statutory filings

Auditor Coordination & Communication

Statutory audit assistance includes coordination with appointed auditors.

Includes:

Responding to audit queries

Providing requested documents and clarifications

Facilitating audit discussions

Supporting information flow between management and auditor

Tax & Statutory Reconciliation Support

Audit assistance includes reconciliation of financial records with statutory filings.

Includes:

Reconciliation with income tax returns

Alignment with GST returns and records

Verification of TDS and other statutory payments

Review of statutory compliance records

Audit Observation & Report Support

After audit completion, certain observations may be noted.

Includes:

Assistance in understanding audit observations

Support in documentation of responses

Coordination for post-audit clarifications

Assistance with follow-up compliance, where applicable

Record Maintenance & Audit Trail Support

Statutory audit assistance also covers maintenance of:

Audit working papers

Financial schedules

Supporting documentation

Statutory registers and records

Proper record maintenance supports future audits and regulatory reviews.

Importance of Statutory Audit Assistance

Supports compliance with statutory audit requirements

Ensures audit readiness and documentation accuracy

Facilitates smooth coordination with auditors

Helps maintain structured financial records

Assists in meeting regulatory and reporting obligations

Inadequate preparation may lead to audit delays or compliance challenges.

Suitability of Statutory Audit Assistance Services

These services are relevant for:

Companies subject to statutory audit

LLPs and firms exceeding audit thresholds

Businesses undergoing tax audits

Organisations with regulatory reporting obligations

Growing enterprises with structured financial operations

Role of Syntrix Consulting 

Syntrix Consulting  supports statutory audit assistance by:

Reviewing audit applicability and scope

Preparing books and records for audit

Coordinating with statutory auditors

Assisting with reconciliations and documentation

Supporting audit-related communications and follow-ups

Our approach focuses on procedural clarity, statutory alignment, and accurate documentation.

Frequently Asked Questions (FAQs)

What is a statutory audit?
A statutory audit is a legally required examination of an entity’s financial statements conducted by an independent auditor.

Is statutory audit mandatory for all businesses?
No, statutory audit is mandatory only for entities meeting prescribed legal or regulatory criteria.

Who appoints the statutory auditor?
Statutory auditors are appointed by the entity in accordance with applicable legal provisions.

Is statutory audit different from internal audit?
Yes, statutory audit is mandated by law, while internal audit is an internal review of processes and controls.

Does statutory audit apply to LLPs?
Yes, LLPs are subject to audit if they cross prescribed turnover or contribution thresholds.

What records are required for statutory audit?
Books of accounts, financial statements, vouchers, statutory filings, and supporting documents are required.

Is statutory audit assistance the same as audit execution?
No, statutory audit assistance supports the audit process but does not replace the independent auditor’s role.