Statutory audit

Statutory audit,

Definition of Statutory audit:

  1. This method applies to local town governments that must provide an account of their business practices and policies.

  2. 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.

  3. 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?

  1. Firms that are subject to audits include public companies, banks, brokerage and investment firms, and insurance companies.
  2. 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.
  3. The purpose of a financial audit is often to determine if funds were handled properly and that all required records and filings are accurate.
  4. 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