Legal Requirement of Statutory audit 
Legal Requirement of Statutory audit for certain types of businesses in India. The Companies Act, 2013, which governs companies in India, specifies the criteria for businesses that are required to undergo a statutory audit.
The following are the criteria for statutory audit for doctors in India:
- If the doctor’s total receipts for the financial year exceed Rs. 50 lakhs, then they are required to get their accounts audited.
- If the doctor’s total receipts for the financial year are less than Rs. 50 lakhs, but their profit is less than 50% and their total income is more than Rs. 2.5 lakhs, then they are also required to get their accounts audited.
In addition to the above, there are certain professional bodies that require their members to undergo a statutory audit. For example, the Indian Medical Association (IMA) requires its members to undergo a statutory audit as part of their annual registration process.
If you are a doctor in India, it is important to check with your accountant or the relevant professional body to determine whether you are required to undergo a statutory audit.
Here are the steps on how to ensure that statutory audit is applicable for doctors:
1. Check the total receipts for the financial year:
If the total receipts exceed Rs. 50 lakhs, then a statutory audit is mandatory.
2. Check the profit percentage:
If the profit percentage is less than 50% and the total income is more than Rs. 2.5 lakhs, then a statutory audit is also mandatory.
3. Check with the professional body:
If you are a member of a professional body, such as the IMA, they may have specific requirements for statutory audit.
If you are unsure whether you are required to undergo a statutory audit, it is always best to consult with an accountant or the relevant professional body.
Here are some of the benefits of undergoing a statutory audit:
- It helps to ensure that the financial statements are accurate and reliable.
- It helps to detect fraud and errors.
- It helps to protect the interests of the shareholders and creditors.
- It helps to comply with the legal requirements.
To visit: https://www.mca.gov.in/
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