CALCULUS VISION
Statutory Audit
Independent verification. Financial integrity. Regulatory confidence.
A Statutory Audit is a legally mandated examination of financial statements to ensure that they present a true and fair view of the financial position and performance of an entity. It is conducted in accordance with the provisions of the Companies Act, 2013 and applicable auditing standards issued by the Institute of Chartered Accountants of India.
Beyond compliance, statutory audit strengthens governance, enhances stakeholder trust, and validates financial reporting integrity. At Calculus, statutory audits are executed with structured risk assessment, internal control evaluation, and analytical review.
Applicability of Statutory Audit
Mandatory where law prescribes.
- Companies
Every company registered under the Companies Act is required to undergo an annual statutory audit irrespective of turnover or profit level. - LLPs & Other Entities
LLPs and certain entities are subject to audit based on turnover or capital contribution thresholds as prescribed under relevant laws. - Special Sectoral Requirements
Certain industries may require audit compliance under additional regulatory frameworks.
Failure to conduct statutory audit within prescribed timelines may result in penalties and regulatory consequences.
Scope of Statutory Audit
Examination beyond financial statements.
- Verification of Financial Statements
Review of balance sheet, profit & loss account, cash flow statement, and notes to accounts for accuracy and compliance. - Evaluation of Internal Controls
Assessment of financial reporting controls to identify weaknesses and risk areas. - Compliance Review
Verification of compliance with accounting standards, statutory provisions, and disclosure requirements. - Substantive & Analytical Procedures
Transaction-level testing, ratio analysis, and variance examination to detect material misstatements.
Key Areas Covered in Audit
- Revenue recognition and completeness testing.
- Verification of expenses and statutory dues.
- Asset existence and depreciation validation.
- Inventory valuation and physical verification review.
- Related-party transaction examination.
- Loan and borrowing compliance review.
Each area is examined through audit procedures aligned with materiality and risk parameters.
Audit Process at Calculus
Structured methodology. Timely completion.
- Preliminary planning and risk identification.
- Understanding business model and control environment.
- Execution of audit procedures and documentation review.
- Discussion of observations with management.
- Issuance of audit report with appropriate opinion.
The process ensures transparency, technical compliance, and constructive feedback to management.
Importance of Statutory Audit
- Enhances credibility with banks, investors, and stakeholders.
- Identifies financial inconsistencies and control weaknesses.
- Ensures regulatory compliance under applicable laws.
- Strengthens governance and accountability.
- Supports funding, valuation, and due diligence processes.
Statutory Audit is not merely a regulatory requirement—it is a governance safeguard. At Calculus, audits are conducted with professional scepticism, regulatory precision, and documentation discipline—ensuring financial statements remain reliable, compliant, and defensible.
CALCULUS VISION 