C S Rushil & Co.Chartered Accountants

19 September 2026 · Written by CA Rushil C S

Statutory Audit Checklist: What Auditors Actually Ask For

The documents and records a statutory auditor will actually request — prepare your company for a faster, smoother audit.

Most statutory audit delays don't come from complex accounting issues — they come from documents nobody prepared in advance. Here is the actual checklist auditors work through, so you can have everything ready before fieldwork begins.

Core financial records

  • Trial balance and general ledger for the full financial year
  • Bank statements for all accounts, reconciled against the books
  • Fixed asset register with additions, disposals, and depreciation schedules
  • Inventory records and valuation basis, if applicable
  • Debtors and creditors ageing schedules

Statutory and compliance documents

  • Previous year's audited financial statements and audit report
  • GST returns filed during the year, reconciled against books
  • TDS returns and challans
  • Board meeting minutes and resolutions passed during the year
  • Statutory registers (members, directors, charges)

Transaction-level evidence

CategoryWhat auditors verify
Related-party transactionsProper disclosure and arm's-length pricing documentation
Large or unusual transactionsSupporting invoices, contracts, and board approval where required
Loans and advancesTerms, interest treatment, and Companies Act compliance (Section 185/186)
Statutory duesProof of timely payment of PF, ESI, GST, TDS, and professional tax

Why preparation speeds things up dramatically

An auditor who has to chase down missing bank statements or reconstruct a fixed asset register from scratch cannot move to substantive testing until that groundwork is done. Companies that maintain organised records throughout the year — not just at year-end — routinely complete statutory audits in half the time of companies that don't.

A simple year-round habit that pays off

  1. Reconcile bank accounts monthly, not annually.
  2. Update the fixed asset register at the time of each purchase or disposal, not retroactively.
  3. File board minutes and resolutions as they happen.
  4. Keep GST and TDS reconciliations current each quarter rather than at year-end.

Our Audit & Assurance service includes a pre-audit readiness review, so gaps in this checklist surface before fieldwork begins rather than during it.

FAQ

Frequently asked questions

How far in advance should we prepare for a statutory audit?

Ideally, maintain audit-ready records throughout the year rather than scrambling at year-end — but at minimum, start gathering the documents on this checklist 3-4 weeks before your auditor's planned fieldwork.

Is statutory audit mandatory even for a small, low-turnover company?

Yes. Every company registered under the Companies Act must have its financial statements audited annually, regardless of turnover, profit, or how small the operation is — there is no exemption for small private companies.

What's the difference between statutory audit and tax audit?

Statutory audit is mandatory for every company under the Companies Act. Tax audit under Section 44AB of the Income Tax Act applies only above prescribed turnover/receipt thresholds and focuses specifically on income-tax compliance, not overall financial statement accuracy.

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