Statutory Audit in Raipur

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Practice Index (9 Sections)

Practice Overview & Verification

Statutory Audit in Raipur — Statutory Scope

Chartered Accountancy advisory and audit services in Raipur, Chhattisgarh & Kalahandi, Odisha. Direct partner supervision ensuring full compliance with ICAI standards and applicable statutes.

Every company incorporated under the Companies Act, 2013—whether Private Limited, One Person Company (OPC), Public Limited, or Section 8 Company—is legally mandated to get its financial statements audited by an independent practicing Chartered Accountant for every financial year, irrespective of turnover, capital, or trading volume.

The statutory auditor examines the balance sheet, profit and loss account, cash flow statement, and notes to accounts, providing an independent opinion on whether the financial statements give a true and fair view in conformity with the Indian Accounting Standards (Ind AS / AS) and Standards on Auditing (SAs) issued by the ICAI.

At Rabi Agrawal & Associates, we conduct comprehensive statutory audits for corporate entities across Raipur, Bhilai, Durg, Bilaspur, and Kalahandi (Odisha), ensuring full compliance with Section 143 reporting, CARO 2020 clauses, accounting software audit trail verification, and MCA Form AOC-4 e-filing.

Statutory Company Audit Standards & Reporting Framework

Corporate statutory audits must satisfy multiple statutory mandates under the Companies Act, 2013 and ICAI Standards on Auditing:

Statutory Audit Standards, CARO 2020 & Regulatory Reporting Matrix

Audit Mandate / Standard	Governing Section / Order	Applicability Criteria	Key Verification Scope	CA Reporting Deliverable
Independent Auditor's Report	Section 143(2) & 143(3) Companies Act 2013	All Companies (Private, Public, OPC, Section 8)	True and fair view of Balance Sheet, P&L, Cash Flow & Notes	Main Audit Report with UDIN & Opinion (Unmodified/Modified)
CARO 2020 (Companies Auditor's Report Order)	Section 143(11) / MCA Order 2020	Public Companies & Private Cos exceeding ₹1 Cr capital / ₹10 Cr turnover / ₹1 Cr debt	21 specific clauses: Title deeds, inventory, loans, benami property, whistle-blower, going concern	CARO 2020 Annexure to Audit Report
Internal Financial Controls (IFCoFR)	Section 143(3)(i) & Rule 8A	Companies with turnover >= ₹50 Cr or aggregate borrowings >= ₹25 Cr	Adequacy and operating effectiveness of internal financial controls over financial reporting	Annexure on IFCoFR Controls Report
Audit Trail (Edit Log) Verification	Rule 11(g) Companies (Audit & Auditors) Rules 2014	All Companies maintaining electronic accounting software	Verification that accounting software has edit log feature enabled throughout the year without tampering	Specific Rule 11(g) reporting in Auditor's Report
LLP Statutory Audit	Rule 24 LLP Rules 2009	LLPs with turnover > ₹40 Lakhs OR partner contribution > ₹25 Lakhs	True and fair view of Statement of Account and Solvency (Form 8)	Independent Auditor's Report to Partners

Audit Mandate / Standard: Independent Auditor's Report

Governing Section / Order: Section 143(2) & 143(3) Companies Act 2013

Applicability Criteria: All Companies (Private, Public, OPC, Section 8)

Key Verification Scope: True and fair view of Balance Sheet, P&L, Cash Flow & Notes

CA Reporting Deliverable: Main Audit Report with UDIN & Opinion (Unmodified/Modified)

Audit Mandate / Standard: CARO 2020 (Companies Auditor's Report Order)

Governing Section / Order: Section 143(11) / MCA Order 2020

Applicability Criteria: Public Companies & Private Cos exceeding ₹1 Cr capital / ₹10 Cr turnover / ₹1 Cr debt

Key Verification Scope: 21 specific clauses: Title deeds, inventory, loans, benami property, whistle-blower, going concern

CA Reporting Deliverable: CARO 2020 Annexure to Audit Report

Audit Mandate / Standard: Internal Financial Controls (IFCoFR)

Governing Section / Order: Section 143(3)(i) & Rule 8A

Applicability Criteria: Companies with turnover >= ₹50 Cr or aggregate borrowings >= ₹25 Cr

Key Verification Scope: Adequacy and operating effectiveness of internal financial controls over financial reporting

CA Reporting Deliverable: Annexure on IFCoFR Controls Report

Audit Mandate / Standard: Audit Trail (Edit Log) Verification

Governing Section / Order: Rule 11(g) Companies (Audit & Auditors) Rules 2014

Applicability Criteria: All Companies maintaining electronic accounting software

Key Verification Scope: Verification that accounting software has edit log feature enabled throughout the year without tampering

CA Reporting Deliverable: Specific Rule 11(g) reporting in Auditor's Report

Audit Mandate / Standard: LLP Statutory Audit

Governing Section / Order: Rule 24 LLP Rules 2009

Applicability Criteria: LLPs with turnover > ₹40 Lakhs OR partner contribution > ₹25 Lakhs

Key Verification Scope: True and fair view of Statement of Account and Solvency (Form 8)

CA Reporting Deliverable: Independent Auditor's Report to Partners

Who Must Have a Statutory Audit

Every Company Incorporated in India: There is zero threshold exemption. A company incorporated this financial year with zero revenue must still hold an audit, adopt accounts at AGM, and file Form AOC-4 with the ROC.

Qualified Independent CA: Only a practicing Chartered Accountant holding a valid Certificate of Practice (CoP) from ICAI can be appointed under Section 139.

LLP Thresholds: LLPs require statutory audit only when turnover crosses ₹40 Lakhs or partner contribution crosses ₹25 Lakhs.

⚠️ Statutory Penalty & Risk Advisory

Mandatory Audit Trail (Edit Log) Rule 11(g) Compliance

Since April 1, 2023, the Ministry of Corporate Affairs (MCA) requires every company using accounting software to maintain an unalterable audit trail (edit log) feature enabled throughout the entire financial year.

Under Rule 11(g), the statutory auditor must specifically state in the audit report whether the company used accounting software with an edit log feature operating without interruption, whether it recorded every transaction modification, and whether the log was retained for the statutory 8-year period.

This requirement cannot be fixed retrospectively. If the edit log was turned off during the year, the auditor is statutorily required to issue a qualified or modified remark under Rule 11(g).

⚙️ Step-by-Step Procedure & Workflow

The Corporate Statutory Audit Workflow & Timelines

The annual corporate audit cycle follows structured statutory milestones:

01
Auditor Appointment (Form ADT-1): First auditor appointed by Board within 30 days of incorporation; subsequent auditors appointed at AGM for a 5-year tenure and intimated to ROC via Form ADT-1.
02
Interim & Year-End Audit Testing: Vouching ledger balances, verifying bank confirmations (SA 505), physical stock verification, checking related-party transactions (Section 188), and testing IFCoFR controls.
03
Signing of Audit Report: Issuing Independent Auditor's Report with 18-digit ICAI UDIN and CARO 2020 Annexure.
04
Adoption at AGM: Financial statements presented to shareholders at Annual General Meeting (held on or before 30th September).
05
Filing with ROC (AOC-4 & MGT-7): Filing audited accounts in Form AOC-4 (within 30 days of AGM) and Annual Return in Form MGT-7/7A (within 60 days of AGM).

⚠️ Statutory Penalty & Risk Advisory

Where Statutory Audits Frequently Encounter Deficiencies

✓Unidentified Related-Party Transactions: Undisclosed contracts or unsecured loans with directors, group entities, or relatives without Board/Shareholder approvals under Section 185/186/188.
✓Stock Valuation Non-Compliance: Lack of physical inventory count documentation or inconsistent valuation methods (AS-2 / Ind AS 2) in steel rolling mills, trading yards, and manufacturing facilities.
✓Statutory Dues Reconciliation: Unreconciled GST liability, delayed PF/ESIC deposits, and unremitted TDS amounts.
✓Inter-Corporate Loans & Deposits: Non-compliance with Section 73 (Acceptance of Deposits) and missing Form DPT-3 filings.

Scope of Practice Services by CA Rabi Agrawal & Associates

We provide comprehensive statutory audit services tailored to private limited companies, public unlisted companies, OPCs, and LLPs across Chhattisgarh and Odisha. Where statutory audit and tax audit (Section 44AB) both apply, our team coordinates both mandates simultaneously, eliminating duplicate efforts and delivering integrated financial reporting.

📍 Pandri, Raipur Practice Headquarters

Consult CA in Raipur for Statutory Audit in Raipur

Visit our Head Office at GF-28, Shyam Plaza, Pandri, Raipur or connect directly with our Chartered Accountant partners for end-to-end advisory and statutory compliance.

🏛️ CA in Raipur Hub →📞 +91 86978 14116

Does a private limited company with zero turnover need a statutory audit?

Yes. Under Section 139 of the Companies Act, 2013, every company must get its financial statements audited every financial year from the date of incorporation, regardless of whether it traded or generated zero revenue.

What is CARO 2020 and which companies are exempt from it?

CARO 2020 (Companies Auditor's Report Order) is an expanded 21-clause reporting order. It applies to all companies except One Person Companies (OPCs), Small Companies (paid-up capital <= ₹4 Cr & turnover <= ₹40 Cr), banking/insurance entities, Section 8 companies, and private companies with paid-up capital/reserves <= ₹1 Cr, borrowings <= ₹1 Cr, and turnover <= ₹10 Cr.

What is the audit trail (edit log) requirement under Rule 11(g)?

Under Rule 11(g), the statutory auditor must verify and report whether the company used accounting software with an active edit log feature recording every change, whether the log was operated throughout the year without being disabled, and whether audit trails were preserved.

When is statutory audit mandatory for an LLP?

Under Rule 24 of the LLP Rules 2009, an LLP must have its accounts audited if its turnover in any financial year exceeds ₹40 Lakhs or if its total partner contribution exceeds ₹25 Lakhs.

What are the ROC filing due dates after statutory audit?

Audited financial statements must be filed in Form AOC-4 within 30 days of the AGM (ordinarily by 30th October), and the Annual Return in Form MGT-7/7A within 60 days of the AGM (ordinarily by 29th November). Delayed filings attract late fees of ₹100 per day per form.

Can statutory audit and tax audit be conducted by the same CA?

Yes. The same Chartered Accountant or CA firm can conduct both the statutory company audit under the Companies Act, 2013 and the tax audit under Section 44AB of the Income-tax Act, 1961. This ensures full reconciliation between book profits and taxable income.

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