Statutory Audit · Chennai
Statutory Audit in Chennai
Independent, evidence-based audit of your financial statements — mandatory under the Companies Act, and a genuine trust signal for lenders and investors when done well.
What is a statutory audit?
A statutory audit is the independent examination of a company's financial statements, mandated under Section 139 of the Companies Act, 2013, for every company registered in India regardless of turnover, profit, or size — including a company with zero transactions in the year. The auditor verifies that the financial statements give a true and fair view, checks compliance with applicable accounting standards, and reports directly to shareholders. Beyond the statutory obligation, a rigorous audit surfaces control gaps and gives lenders, investors, and the board an independently verified picture of the business. For current rules and procedures, see the Ministry of Corporate Affairs — Companies Act, 2013.
What's covered
First Statutory Audit (New Companies)
Appointment of the first auditor within 30 days of incorporation and audit of the first financial year, however short.
Annual Statutory Audit
Full-scope audit of the balance sheet, profit & loss statement, and cash flow statement in line with Indian Accounting Standards (Ind AS) or AS as applicable.
Auditor Appointment & Rotation
Advisory on mandatory auditor rotation requirements for applicable companies and the ADT-1 filing.
CARO Reporting
Compliance with the Companies (Auditor's Report) Order where applicable, covering fixed assets, inventory, loans, and statutory dues.
Audit Committee Coordination
Liaising with the audit committee (where constituted) on audit scope, findings, and internal control observations.
Books & Records Readiness Review
Pre-audit review to flag documentation gaps early, reducing back-and-forth once fieldwork starts.
How a statutory audit engagement proceeds
- 1
Auditor appointment
The Board appoints the first auditor within 30 days of incorporation, or shareholders appoint/re-appoint the auditor at the AGM; the ADT-1 filing confirms the appointment with the ROC.
- 2
Planning and books review
We review the trial balance, ledgers, and prior-year workpapers to scope the audit and flag documentation gaps before fieldwork starts.
- 3
Fieldwork and testing
Verification of balance sheet items, profit & loss transactions, statutory dues, and compliance with applicable Accounting Standards or Ind AS.
- 4
CARO and audit committee review
Where applicable, reporting against the Companies (Auditor's Report) Order, and discussion of findings with the audit committee or board.
- 5
Audit report and sign-off
The signed audit report, along with the audited financial statements, is issued to shareholders and forms the basis for the company's AOC-4 and MGT-7 ROC filings.
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FAQ
Frequently asked questions
Is statutory audit mandatory even for a company with no business activity?
Yes. Every company registered under the Companies Act must have its financial statements audited annually regardless of turnover, profit, or business activity — a dormant or zero-transaction company is not exempt. Skipping this exposes directors to penalties under the Act, not just a compliance gap.
Who can be appointed as a statutory auditor?
Only a practising Chartered Accountant or a firm of Chartered Accountants, appointed by the shareholders (or the Board for the first auditor) and not disqualified under Section 141 of the Companies Act — for instance, an auditor cannot hold shares in the company being audited.
How long does a statutory audit take for a small or mid-sized company?
Typically 2–4 weeks from the start of fieldwork, depending on how organised the books are and how quickly queries are answered. Companies with clean, reconciled books month-to-month see the faster end of that range; those doing a full year's reconciliation at audit time should budget longer.
What happens if my company misses the statutory audit deadline?
Late or missed statutory audits can trigger penalties on the company and officers in default under the Companies Act, and unaudited financials block your annual ROC filings (AOC-4, MGT-7), which carry their own separate late fees that compound daily.
Do you conduct statutory audits outside Chennai?
Yes — for clients across Tamil Nadu and pan-India, with fieldwork (in-person or remote, depending on your systems) scheduled around your business calendar rather than ours.
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