Non-statutory audit is a type of audit which is not legally required. Statutory Audits are those mandated by a statute. It is a legal requirement as per the state or national laws prevalent in the region.

While statutory audits are primarily concerned with financial activities, non-statutory audits are not limited to financial reporting. Non statutory audit is a process of review and verification of a company’s business and it is not required by any law or statute. Or does such audit subject to less stringent rules? Responsibilities of directors No changes apart from the pervasive changes referred to above. One of the main types of audits is a statutory audit. Non statutory audit is a process of review and verification of a company's business and it is not required by any law or statute.This type of audit is performed to identify the weakness of an organization which may hamper productivity and efficiency level of the business. 2. Answer (1 of 2): Hello,Thanks for your question. With the increase in the audit limit numerous companies have fallen out of the requirement for a statutory audit. In India, the laws regarding a statutory audit are in the Companies Act, 2013. While statutory audits are primarily concerned with financial activities, non-statutory audits are not limited to financial reporting. Statutory audit, also known as financial audit, is one of the main types of audit which is to be done as per the statutes applicable to the entity and its primary purpose is to gather all relevant information so that the auditor can give his opinion on the true and fair view of the company’s financial position as on the balance sheet date. It is a legal requirement as per the state or national laws prevalent in the region. advantages and disadvantages of non statutory audit Statutory audits are reviews of a business or governments financial records as required by law. STATUTORY AUDIT OF BANK. An internal audit is conducted by the permanent staff of the same office to detect weakness in system, procedures and for the improvement. voluntary, audit provides assurance about the true and fair view of the financial statements. Statutory Audit. The difference between statutory audit and tax audit is a little complicated. The provisions in section 498 of the Companies Act 2006 do not apply to non-statutory opinions. Once a company has chosen to do a non-statutory audit, will this audit be bounded by the same exiting auditing rules? This type of audit is performed to identify the weakness of an organization which may hamper productivity and efficiency level of the business.
A statutory is another name of a financial audit. An internal auditor is generally appointed by the management. 3.

Internal Auditor - 1. Let us explore the scope and advantages of a statutory audit However, the nature of most of these companies is that they are small or family run, and need the assistance of financial institutions or their main suppliers by way of finance. It is different from the statutory audit that the entity needs to engage with an audit firm to perform its review in financial statements. Non-statutory audit is a type of audit which is not legally required. A non-statutory, i.e.

So by that definition even tax audit is a statutory audit.The management of the organization makes the appointment of an internal auditor.