A statutory audit is a financial audit that is legally required for certain types of companies under Indian law. As per the **Companies Act, 2013**, every company must get its books of accounts audited annually to ensure that the financial information presented to shareholders, regulators, and the public is true and fair. The goal is to enhance transparency and prevent financial irregularities.
Statutory audit acts as a control mechanism that builds public and investor trust. It ensures:
The following entities are legally required to undergo statutory audits in India: