A Statutory Audit is a legally required examination of a company’s financial records to ensure accuracy and compliance with applicable laws and regulations.
A Statutory Audit is mandated by law (such as the Companies Act in India) and must be conducted by an independent auditor. Its purpose is to verify whether a company’s financial statements present a true and fair view of its financial position.
In India, statutory audits are governed by bodies like the Institute of Chartered Accountants of India and regulatory authorities such as the Ministry of Corporate Affairs.
"A company’s annual financial statements are audited by a Chartered Accountant to comply with legal requirements."