STATUTORY AUDIT:

Overview: A legally required review of the accuracy of a company's or government's financial records. The purpose of a statutory audit is the same as the purpose of any other audit - to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, book keeping records and financial transactions.

Requirement: In India, mainly statutory audit means audit under Companies Act in which auditor reports to the member of the company i.e. shareholders. This audit is done by practicing Chartered Accountant only.