Statutory and non-Statutory Audit
Statutory audit and non-statutory audit are two types of audits that serve different purposes.
A statutory audits is a legally required audit that is performed to ensure that a company’s financial statements are accurate and comply with applicable accounting standards and laws. This type of audit is typically conduct by an independent auditor who is appoint by the company’s shareholders or regulatory bodies. The scope and objectives of a statutory audit are determine by the law, and the audit report is submit to the relevant authorities.
On the other hand, a non statutory audits, also known as an optional audit, is conduct voluntarily by a company to assess the accuracy of its financial statements and provide assurance to its stakeholders. The scope and objectives of a non-statutory audits are determine by the company and can be tailor to meet its specific needs. This type of audit is not legally require and may be conduct by an internal auditor or an external auditor.
Overall, the main difference between statutory and non-statutory audits is that the former is legally require and mandate by law, while the latter is optional and conduct at the discretion of the company.
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