07 January 2012
sir/mam, What is the difference between statutory audits and internal audit? And can a CA conduct audit of those clients whose books are maintained by him? Is statutory audits are conducted only once in an year under companies act ?
Statutory audit is an audit required by any prevailing statue like Companies Act, 1956.
Internal Audit is an audit at the willingness of the management, to get the knowledge of the areas where improvements can be done.
A CA can not conduct the audit of those clients whose books are maintained by him. It is against professional ethics of ICAI.
Statutory audit is conducted for each financial year. Financial year can extend upto 15 months as per Companies Act, 1956. Generally speaking, it is conducted in each year under Companies act.
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