Definition of Statutory audit:
This method applies to local town governments that must provide an account of their business practices and policies.
The term statutory denotes that the audit is required by statute. A statute is a law or regulation enacted by the legislative branch of the organization’s associated government. Statutes can be enacted at multiple levels including federal, state, or municipal. In business, a statute also refers to any rule set by the organization’s leadership team or board of directors.
A statutory audit is a legally required review of the accuracy of a company's or government's financial statements and records. The purpose of a statutory audit is to determine whether an organization provides a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records, and financial transactions.
How to use Statutory audit in a sentence?
- Firms that are subject to audits include public companies, banks, brokerage and investment firms, and insurance companies.
- An audit is an examination of records held by an organization, business, government entity, or individual, which involves the analysis of financial records or other areas.
- The purpose of a financial audit is often to determine if funds were handled properly and that all required records and filings are accurate.
- A statutory audit is a legally required review of the accuracy of a company's or government's financial statements and records.
Meaning of Statutory audit & Statutory audit Definition