Financial Audit means inspection of business’s financial records to check their accuracy, completeness and fairness. It can be done for any reasons by the organisation whereas Statutory Audit is a mandatory process, it is legally required to be done by the organisation of financial records by a qualified chartered accountant in practice. It is governed by Companies Act,2013 and Income tax act,1961.
Statutory audit under the Companies Act, 2013, is conducted every year and must mandatorily be completed within 6 months from the financial year’s end. For instance, if a company’s financial year ends on 31st March, the statutory audit must be conducted and completed by 30th September of the same year.
