A legally required check of the accuracy of the financial statements and records of a company or government is called a Statutory Audit.
Statutory audit is a legal process that is required to review the accuracy of an organization’s financial statements and records. A statutory audit is compulsory for government institutions to monitor and evaluate their performance. A statutory audit is also often called an external audit in most countries.
Who needs Statutory audit?
Every public and private limited company has to undergo a statutory audit. Not taking into account the nature of the business or turnover, these businesses are mandated to get their annual accounts audited each financial year.