Audit & Assurance · Companies Act

Statutory Audit mandated by the Companies Act.

Independent audit of financial statements for all Indian companies — private, public, OPC, and Section 8 — conducted by ICAI-registered Chartered Accountants in compliance with the Companies Act, 2013 and applicable Ind AS standards.

Every company incorporated in India — regardless of its size, turnover, or profit — is required to have its financial statements audited by an independent Chartered Accountant. Section 143 of the Companies Act, 2013 mandates that the auditor examine the books of account, verify compliance with accounting standards, and report whether the financial statements present a true and fair view of the company's state of affairs.

The statutory audit is not merely a regulatory checkbox. It is the primary mechanism through which directors, shareholders, lenders, and regulators receive independent assurance on the financial health of a company. An unqualified audit opinion strengthens credibility with banks and investors; a qualified opinion or emphasis of matter signals issues that need addressing.

At Beyonte Compliances, our statutory audit engagements are structured around risk — we focus our testing where misstatement is most likely, document every conclusion in signed workpapers, and deliver the audit report and CARO annexure well within the deadline for your AGM and ROC filings.

What Our Statutory Audit Covers

Financial Statement Audit

Examination of the balance sheet, profit & loss account, cash flow statement, and notes to accounts — including verification of opening balances, year-end cut-offs, and disclosures required by Schedule III.

Ind AS Compliance Review

Verification that financial statements are prepared in accordance with the applicable Indian Accounting Standards — including revenue recognition, leases, financial instruments, and segment reporting where applicable.

CARO 2020 Reporting

Detailed reporting on fixed assets, inventory, loans, related party transactions, statutory dues, fraud, going concern, and 40+ other matters required by the Companies Auditor's Report Order.

IFC / ICFR Opinion

Evaluation and reporting on the adequacy and operating effectiveness of Internal Financial Controls over Financial Reporting — mandatory for prescribed unlisted and all listed companies.

Related Party Transaction Review

Scrutiny of all transactions with directors, subsidiaries, associates, and group companies — verifying arm's length pricing, board approvals, and disclosures required by the Act and Ind AS 24.

Loans & Advances Verification

Review of loans granted by the company, inter-corporate deposits, and advances — checking compliance with Sections 185, 186, and 188 and verifying whether security and terms are adequate.

Statutory Compliance Verification

Confirmation that TDS, GST, PF, ESI, and other statutory dues have been deducted and deposited within prescribed timelines — forming a key part of the CARO 2020 report.

Audit Report & Filing Support

Issuance of the signed audit report, management representation letter, and assistance with Form AOC-4 filing — closing the annual statutory audit cycle completely.

Our Audit Process

Appointment & Engagement Letter

Auditor appointment via AGM or board resolution, filing of ADT-1 where required, and an engagement letter covering scope, timelines, and fee.

Planning & Risk Assessment

Review of prior year audit, understanding of business operations, identification of significant risks, and preparation of a tailored audit plan.

Internal Control Evaluation

Walk-through of key financial processes — purchases, sales, payroll, fixed assets — and assessment of controls to determine the extent of substantive testing required.

Fieldwork & Substantive Testing

Ledger scrutiny, vouching, third-party confirmations, bank reconciliations, physical verification of assets, and year-end cut-off testing — documented in signed workpapers.

Reporting & Post-Audit Support

Audit report, CARO 2020 annexure, management letter on control weaknesses, and support with AGM documentation and ROC annual filing.

Why It Matters

✓Mandatory for every company regardless of size or turnover

✓ICAI-registered auditors experienced in Ind AS and Schedule III

✓Complete CARO 2020 and IFC reporting in every engagement

✓On-time delivery ahead of AGM and ROC filing deadlines

✓Strengthens lender and investor confidence in financial statements

✓Identifies related-party and compliance risks before they escalate

✓Management letter with practical control improvement recommendations

✓Single team handles audit, CARO, IFC, and AOC-4 filing support

Frequently Asked Questions

Yes. Every company incorporated in India — private limited, public limited, OPC, or Section 8 — must have its financial statements audited by an independent Chartered Accountant every financial year, regardless of turnover, profit, or whether the company is active or dormant. There is no turnover or size threshold for the Companies Act statutory audit.

The statutory audit must be completed and the audit report placed before the Annual General Meeting. For most companies, the AGM must be held within six months of the financial year end — meaning by 30 September for companies with a March year-end. The audited financials and audit report must also be filed with the ROC in Form AOC-4 within 30 days of the AGM.

CARO 2020 is the Companies Auditor's Report Order — a mandatory annexure to the audit report requiring the auditor to comment on over 40 specific matters including fixed assets, loans, inventory, related party transactions, fraud, and statutory dues. It applies to most companies except private companies below prescribed size thresholds. We assess applicability at the start of each engagement.

Typically we require the trial balance, ledger extracts and books of account, bank statements with reconciliations, statutory registers, GST and TDS returns, fixed asset register, and prior year audit report. We share a detailed checklist at the start of engagement based on your company's nature and size.

Yes. We handle consolidated financial statement audits, branch audits, and co-ordinate with component auditors for subsidiaries where required. Each engagement is planned with a clear scope that covers all entities and branches included in the consolidated accounts.

Get your statutory audit right the first time.

Talk to our audit team about a timely, thorough Companies Act statutory audit for your company.