Glossary · Accounting & Audit
Audit
A systematic, independent examination of financial records, statements, and supporting documents to express an opinion on their truth and fairness.
A financial audit is conducted in accordance with the Standards on Auditing (SAs) issued by the Institute of Chartered Accountants of India (ICAI). Statutory audits of companies are mandated under Section 139 of the Companies Act, 2013, while tax audits of certain businesses are required under Section 44AB of the Income Tax Act. The auditor expresses an opinion on whether the financial statements give a true and fair view and comply with applicable accounting standards (Ind AS or AS).
Examples
A listed company with ₹500 crore turnover appoints a Big-4 firm to conduct its statutory audit and certify the annual financial statements.