Statutory Audit is a type of audit which is mandated by a Law or a Statute to ensure the books of accounts presented to the regulators and public are true and fair.
It is important to note that the non-compliance is identified at the earliest by the management itself and appoint the cost auditors before the they receive the notice from the MCA.
Audit Quality Maturity Model (AQMM) is a tool for self-evaluation of audit firms & sole proprietors towards a technologically driven mechanism to increase operational efficiency.
Auditors work in various capacities within different industries. Auditor appointment and resignation all are to be served to Registrar of Companies.
The penalties and responsibilities of an auditor may seem onerous however it would be incorrect to hold audit as risky. With essential features of auditor like independence, professional skepticism, documentation skills and continuous knowledge upgradation any Chartered Accountant can make a name for himself in the field of Audit profession.
CONSULTATION PAPER DATED 29th SEPTEMBER 2021 OF NFRA IS OPPORTUNITY TO TELL THE WORLD ADVANTAGES OF AUDIT TO EVEN SMALLEST ENTERPRISE
The COVID 19 pandemic has bought unprecedented changes and uncertainties in the in the business environment. It had disrupted lives / labour force, business operations, insolvency risks, resulted in inflation and supply chain.
In case, NFRA takes any drastic decision to exempt the need for statutory audit of MSME companies for any reason, the size of frauds would go up and the Indian economy will be in the doldrums.
07 October 2021
4984 Views
Removal of Statutory audits on MSMCs might facilitate frauds and misstatements since GST and Tax audits have been scaled down. Moreover, minority interest in companies will be affected.
If Statutory Audit is exempted then there will be no check on business transactions and such exemption will lead to an emergence of spurious companies within MSMCs.
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