Internal Audit and Statutory Audit

Internal Audit and Statutory Audit

What is the Internal Audit and Statutory Audit in Accounts Point of View? When the Audit Conducted?

I am working with Educational Institution? I need the Clarrification of Internal Audit and Statutory Audit Process?

Re: Internal Audit and Statutory Audit

Hi Subhasri,

Many of the people dont know the meaning of Internal audit and statutory audit. I will clarify it.

Internal audit is an audit which a compay(Who is coverd by CARO i.e. Companies Auditor report order) has to get it done from from a chartered accountant, its mainly in relation to internal control prevailing in the organisation. It is as good as regular audit. It is good to have control in the organisation. Further, statutory auditor will rely the internal audit for the purpose of their statutory audit.

Statutory audit is an audit to comply with the statues, which is mainly Companies Act, 1961 and Income tax Act, 1961. While doing Statutory audit one needs to follow the provisions of the statute, like Schedule VI in companies Act and all the other provisions of the companies Act. In relation to Income tax it is Form No.3CD etc. There is specific format is there for statuory audit but for internal audit there is not format is there for report.

I think above information will suffice your requirements. If you need any further information than you can contact me on my email which is or you can give me a call on mobile which is 09987389930.

Thanks

Ajit

Re: Internal Audit and Statutory Audit

Dear,
Mr. Ajit has consider all point but i would like to add one point that internal audit may be compulary & applicable as per companies act when compnay get tourn over of Rs.5 core.
Kamlesh