Statutory Auditors in India help businesses maintain trust with stakeholders, including shareholders, government authorities, and creditors. Their reports serve as a foundation for informed decision-making, safeguarding against fraud, and upholding corporate governance standards.

1. STATUTORY AUDITOR IN INDIA
Before you know the meaning of the statutory auditor, it is essential to understand the purpose
of the audit. Some people think that it is only about checking. However, the term is
comprehensive and encompasses a lot more than just ‘checking’. Moreover, to become the
statutory auditor in India, you have to be a qualified Chartered Accountant. No other person has
the authority to conduct a statutory audit for any organization. Deviation of such rules can lead
to adverse legal consequences.
Definition of Statutory Audit
A statutory audit is a legally required check of the accuracy of the financial statements and
records of a company or government. A statutory audit is intended to determine if an
organization delivers an honest and accurate representation of its financial position by
evaluating information, such as bank balances, financial transactions, and accounting records.
An audit is an examination of records held by an agency, company, government department, or
individual. This usually involves analyzing different financial records or other areas.
Role of Statutory Auditor
To operate the business smoothly and without any complications, a statutory audit is
significant. Moreover, it is mandatory for certain companies as per the relevant laws. The term
statutory signifies that statutory audit is necessary.

2. Skills of the Statutory Auditor
The primary skills of the statutory auditor are as follows;-
Self-motivation and determination concerning the discharge of duties
Expressing an opinion in the independent manner
Excellent skills to meticulously solve the problems
Accounting knowledge and ability to deal with statistical issues
Ability to work in a diverse environment
Competence to identify the risks or fraud or errors and other vulnerabilities present
Ability to check the internal control system
Possesses a team-oriented mentality
Can communicate effectively and efficiently
Innovative and confident at the same time
Fabulous at handling the latest technological advancements
Promoters of Risk Management and Appropriate Corporate Governance
The objective of a financial audit is often to assess whether funds have been properly handled
and that all records and filings required are accurate. Undergoing a statutory audit is not an
implicit indication of misconduct. Instead, it is also a formality intended to help discourage
crimes, such as misappropriating funds by ensuring a professional third party routinely
scrutinizes various documents. The same applies to other audit forms too.
A statutory auditor applies various rules to conduct the audit as the respective statute requires.
These are the Auditing and Accounting Standards. Also, the person must have sufficient
knowledge and skills to identify the errors, misrepresentations, or frauds, if any. Moreover, the
most significant duty of the statutory auditor is to express a reasonable opinion in the Final
Audit Report.
Chartered Accountant must adhere to all the procedures and standards of the Institute.