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Topic hub · Statutory audit

Statutory audit in India: Companies Act, standards and reports

A statutory audit is the audit of a company's financial statements required by law, ending in an auditor's report that gives an opinion on whether they give a true and fair view. In India it is governed mainly by the Companies Act, 2013, the Standards on Auditing issued by ICAI and, for larger entities, oversight by NFRA.

This hub gathers CORAA's guides on auditor appointment and eligibility, the key Companies Act sections, the audit report and modified opinions, CARO, UDIN, tax audit and filings, with templates and free calculators for working papers.

Each guide states what its facts rest on and what we could not verify. Standards and laws change, so confirm dates and wording against the primary source before relying on them.

Guides

The essential guides: start here.

Audit Standards · 5 Oct 2026
Statutory Audit Explained: Who Needs It, the Process and the Report (India)
Statutory audit in India explained: who needs it, how the auditor is appointed, the stages of the audit, the audit report and CARO, in plain English.
Audit Basics · 8 Oct 2026
Statutory Auditor in India: Appointment, Rights, Duties and Removal in One Guide
What a statutory auditor is, who appoints one, what rights and duties the Companies Act gives, and how an auditor is removed or resigns. One plain guide.
Company Law & Reporting · 7 Oct 2026
Section 139 of the Companies Act: Appointment, Tenure and Rotation of Auditors
Section 139 explained in plain words: who appoints the auditor, how long the term runs, rotation for individuals and firms, and the ADT-1 filing.
Audit Standards · 7 Oct 2026
SA 700 and the Audit Report Format: Structure of the Auditor's Report on Financial Statements
How an auditor's report is laid out under SA 700: the opinion first, then basis for opinion, responsibilities, signature and date. Section by section.
Company Law & Reporting · 24 Mar 2026
CARO 2020 Applicability FY 2025-26: Exemption Limits & All 21 Clauses
For FY 2025-26 CARO applies to every company except six categories. A private company is exempt only if it clears all three limits — ₹1 crore capital, ₹1 crore borrowings, ₹10 crore revenue. Full exemption table plus all 21 clauses.
Practice Management · 9 Oct 2026
What Is UDIN? ICAI's Unique Document Identification Number Explained
What UDIN is, why ICAI introduced it, which documents need it, the 18-character structure, who generates it and what happens if a CA skips it.
Tax Audit · 5 Oct 2026
Income Tax Audit Explained: Tax Audit Under Section 44AB vs Scrutiny Assessment
Income tax audit means two different things in India: a CA's tax audit under section 44AB and a department scrutiny assessment. How they differ and what to do.
All guides on this topic
Free templates and tools

Ready-to-use working papers, no sign-up to look around.

Word template
Audit Engagement Acceptance / Continuation Checklist (ICAI)
A risk-assessment checklist for accepting a new audit client or continuing an existing one — management integrity, reporting personnel, incentives to manipulate, and more.
Word template
Audit Engagement Letter Template (ICAI, Companies Act 2013)
Generate an SA-210 compliant engagement letter for statutory audits — fill in the firm and client details and download a Word file you can put on letterhead.
Word template
Audit Planning Memo Template
Record the entity, materiality, significant risks, approach, team and timetable for an audit engagement.
Word template
Audit Working Paper Index and Cross-Reference
One index for the whole audit file with references, preparer, reviewer, evidence location and cross-references.
Word template
Audit Report Review Checklist — SA 700 Elements
Check each element of the auditor's report before signing: opinion, basis, KAMs, responsibilities, legal reporting and signature block.
Word template
Management Letter Template — Audit Observations
Set out observations, risks, recommendations and management responses, with the status of prior-year matters.
Word template
CARO 2020 Checklist — Companies (Auditor's Report) Order
A clause-by-clause checklist covering the 21 reporting requirements of CARO 2020 — property, inventory, loans & guarantees, deposits, fraud reporting, going concern, statutory dues, and more.
Word template
UDIN Register Format — Firm Control Sheet
One controlled register for every UDIN the firm generates: signing date vs generation date, document type, portal particulars, revocation status, and a monthly signed-vs-generated reconciliation — editable in Word.
Word template
Peer Review Readiness Checklist — ICAI Self-Assessment
Assess the firm the way an ICAI Peer Reviewer will: firm-level quality system (SQC 1/SQM 1), a three-file engagement-discipline test, reporting quality, and a gap-and-owner action plan — editable in Word.
Word template
Form 3CD Tax Audit Report Format
The CBDT-prescribed Form 3CD statement of particulars (Part A general info, Part B detailed particulars) plus the companion Form 3CB auditor's report — updated for the AY 2025-26 amendments (Notification 23/2025): clauses 28/29 omitted, expanded MSME and 43B(h) disclosures, new clause 36B for share buybacks. Placeholders for every entry the auditor needs to fill — no AI fluff.
Word template
Audit Fee Quotation Worksheet
Estimate hours by phase and level, add cost and risk, and check the fee before you quote.
Word template
Audit Trail (Edit Log) Compliance Checklist — Rule 3(1) and Rule 11(g)
List every system that holds books, test the edit log, preservation and service provider reports, and record the auditor's Rule 11(g) work.
Free tool
CARO 2020 applicability checker
Test whether CARO 2020 applies.
Free tool
Materiality calculator
Overall, performance and trivial materiality.
Free tool
Audit sampling calculator
Sample sizes for attribute and monetary unit sampling.
Free tool
Auditor rotation tracker
Track section 139(2) rotation.
Free tool
Section 141 disqualification checker
Check auditor eligibility.
Free tool
Section 44AB applicability checker
Check whether a tax audit is needed.
Frequently asked questions

Statutory audit in India: in plain words.

A statutory audit is the audit of financial statements required by law. The auditor examines the books and evidence and gives an opinion on whether the financial statements give a true and fair view. In India it is required for companies under the Companies Act, 2013. Read more: Statutory audit explained.
Companies registered under the Companies Act, 2013 must have their accounts audited, whatever their size. Other entities, such as LLPs, banks and trusts, are covered by their own laws, with audit required if the law or the thresholds in it apply. Check the law that governs your entity.
Generally the members of the company appoint the auditor at the annual general meeting, with the first auditor appointed by the board. The details, including tenure and rotation for certain classes of company, are in section 139 and its rules. Read more: Section 139 explained.
A chartered accountant in practice, or a firm of chartered accountants, subject to the disqualifications in section 141, which cover matters such as relationships with the company and some other conflicts. Use our checker and read the section.
The audit report gives the opinion on the financial statements under SA 700, with sections on the basis of opinion, key audit matters where required, and other legal and regulatory requirements such as CARO and reporting on internal financial controls. Read more: SA 700 and the audit report format.
The Companies (Auditor's Report) Order, 2020 requires the auditor of covered companies to report on specified matters, clause by clause, as part of the audit report. Applicability depends on the type and size of the company. Read more: CARO 2020 clause-by-clause.
UDIN is the Unique Document Identification Number that ICAI requires chartered accountants to generate for certification and attest work, so that documents can be verified. Read more: What is UDIN.
A statutory audit is under the Companies Act and ends in an opinion on the financial statements. A tax audit under section 44AB of the Income-tax Act is a separate audit, required above specified limits, with a report in Form 3CA or 3CB and particulars in Form 3CD. Read more: Tax audit vs scrutiny.
The Standards on Auditing (SAs) are issued by ICAI and set out how an audit is to be performed and reported. They are based on the international standards and apply to audits of financial statements in India.
ICAI regulates the profession and runs peer review and discipline. NFRA, constituted under the Companies Act, oversees the quality of audits of specified classes of company, including listed companies and large unlisted ones. Read more: Audit quality in India.