How to do Statutory Audit of Manufacturing Companies??
It is important that we understand the need for a statutory audit to be carried out. In case of a company, the owners of the company are the shareholders. However, they do not run or manage the day to day affairs of the company. This is done by the board of directors and the management of the company. The shareholders cannot vouch or verify each transaction of the books of accounts. They only have right for obtaining financial statements. Thus, they need the financial statement should be reliable & free from misstatements. Therefore, the shareholders needs assurance that the accounts maintained and published by the company are authentic and genuine. Therefore, the law requires that an independent auditor to conduct a statutory audit. The shareholders in the Annual General Meeting (AGM) of the company, appoint a person as statutory auditor. The independent auditor has full authority to check the financial records of the company and publish his findings via an auditor’s r