statutory audit

A statutory audit is a formal examination of a company's financial statements by an independent auditor, required by law. Its purpose is to verify that the financial reports are accurate and comply with relevant accounting standards. This process helps ensure transparency and trust for investors, regulators, and other stakeholders. The auditor reviews the company's books, transactions, and internal controls, providing an unbiased opinion on whether the financial statements present a true and fair view of the company's financial health. Statutory audits are necessary for legal compliance and to promote confidence in the company’s financial reporting.