What are the difference between statutory and non-statutory audit?

What are the difference between statutory and non-statutory audit?

A non-statutory audit is a form of audit which is not legally required. Statutory audits mainly focus on financial activities whereas a non-statutory audit is not limited to financial reporting. Non-statutory audits can be used for any part of an organisation.

What’s the difference between statutory and nonstatutory?

The word “statutory” describes something determined or controlled by a law, or statute. “Nonstatutory” refers to something based on customs or precedents.

What is non-statutory audit?

A non-statutory audit is the review and verification process of the business of a company and it is not required by any law or statute. The non-statutory audit is a type of audit which is performed to identify an organisation’s weaknesses which may hamper the productivity and also the efficiency level of the business.

What’s the difference between statutory audit and private audit?

Originally Answered: what is the difference between statutory audit and private audit? 1) Statutory audit is an audit which is mandated by statute/law i.e. audit required to be held under Companies act 2013. Private audit is held by management if they need assurance on any financial aspect of the company.

Who is eligible for statutory audit?

LLP: Statutory Audit is Applicable only if turnover in any financial year exceeds Rs. 40 Lakhs or its contribution exceeds Rs. 25 Lakhs. Private Limited Company/Public Limited Company: Mandatory irrespective of Turnover, Profit, etc.

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.

Is statutory audit compulsory?

Statutory Audit as the name suggests is a compulsory audit for all companies. Every entity which is registered under the Companies Act, as a Private Limited or a Public Limited company has to get its books of accounts audited every year.

Who is liable for statutory audit?

For LLP: Statutory audit is applicable if turnover in any financial year exceeds Rs. 40 Lakhs or its contribution exceeds Rs. 25 Lakhs. 2.

What is statutory record and examples?

Examples of statutory records include: admission/withdrawal register, attendance register, scheme of work, time-table, school diary, log book, finance record books, continuous assessments records, etc. A school head must have accurate information to help him/her assess meaningfully the progress of the school.

What are non statutory accounts?

‘Non-statutory accounts’ are accounts or other published financial information that are not the company’s statutory accounts (e.g. simplified accounting information such as an account in any form claiming to be a balance sheet or profit and loss account relating to the financial year of a company or group).

Who is liable 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.

Who qualifies for statutory audit?

The accounts of a Limited Liability Partnership (LLP) must be audited if it has an annual turnover of Rs. 40 lakhs or more or Rs. 25 lakhs or more capital contribution. Tax audit on the other hand is required for Proprietorships and Partnership Firms that have cross a certain threshold of sales.