Understanding Company Audit Requirements in Bangalore

A conversational guide to navigating statutory audits and maintaining corporate compliance for your business.

The Discussion

Priya (Business Owner)

Hi! My company just completed its first financial year in Bangalore. My accountant mentioned that we need to get a "Company Audit" done. Is this really mandatory even though our turnover is quite small?

CA Expert (Aftab & Associates)

Hello Priya! Yes, it is. If your business is registered as a Private Limited Company, a One Person Company (OPC), or a Public Limited Company, a Statutory Audit is mandatory under the Companies Act, 2013. This applies regardless of your turnover or whether you made a profit or a loss.

Priya (Business Owner)

Oh, I see. What exactly does a statutory auditor do? Are they just going to check if my accountant made any math errors?

CA Expert (Aftab & Associates)

It goes much deeper than that! A statutory auditor, who must be a practicing Chartered Accountant, examines your financial statements, bank accounts, invoices, and accounting policies. Their job is to express an independent opinion on whether your financial statements represent a "true and fair view" of the company's financial health, and to ensure you are complying with the accounting standards and the law.

Priya (Business Owner)

That sounds important. When do I need to get this done by?

CA Expert (Aftab & Associates)

The audit report must be ready before your Annual General Meeting (AGM), which typically must be held by September 30th of the following financial year. After that, the audited financials are filed with the ROC. Don't wait until the last minute!

Quick Knowledge Check

When is a Statutory Audit mandatory for a Private Limited Company?

Glossary of Terms

Statutory Audit
A legally required review of the accuracy of a company's or government's financial statements and records, conducted by a practicing Chartered Accountant.
Annual General Meeting (AGM)
A mandatory yearly gathering of a company's interested shareholders, where the directors present the annual report and audited accounts.
True and Fair View
An auditing concept that means the financial statements are free from material misstatements and faithfully represent the financial performance of the entity.

Related Tags

Company Audit Statutory Audit Corporate Compliance CA in Bangalore ROC Filing

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