The term “statutory auditor” refers to an external auditorwhose appointment is mandated by law. A “statutory audit” is a legally required review of the accuracy of a company’s or government’s financial records.

Every company irrespective of its nature of business or turnover incorporated under the companies act is required to get its accounts audited by a Chartered Accountant in Practice to ensure true and fair view of the accounts.
Statutory Audit ensures reliability of annual accounts of the company for various consumers of Accounts of the Company like government, shareholders, debtors, creditors, bankers etc.