Statutory Audit – Meaning & Applicability
Statutory Audits are audits determined by different laws such as the Reserve Bank of India, Income Taxes, Company Laws, etc. Chartered accountants need to conduct many audits in accordance with the provisions of different laws.

The Process to Conduct a Statutory Audit

Auditors must ensure that their reports must include quantification of advances, deposits, interest income and interest costs. Important elements for checking the mandatory bank audits are:

A. Cash Verification Procedure

B. Tax Related Items

C. Verification of Loan Accounts

Audit Report

After conducting an audit, the auditor must provide an audit report for the same thing. An auditor is required to make a report as stated in the engagement letter where he must state the following:

I. Does the balance sheet show a true and fair view that contains all the things needed to show a true and fair view of the bank’s business

ii. Whether profit and loss accounts show the actual balance for the period covered by the account

iii.  whether the transactions made by branches that are not in branch power