Statutory Audit Services in India - National CA Firm and Methodology

Most founders confuse statutory audit (Section 139, Companies Act 2013 - mandatory for all companies) with tax audit (Section 44AB, Income-tax Act 1961 - applies only above turnover thresholds). Both are distinct engagements with separate reports; the same CA firm can do both. Patron handles both, with separate workpaper files and UDIN numbers.

The CARO 2020 framework, notified by MCA via G.S.R. 175(E) dated 25 February 2020, adds 21 specific reporting clauses on top of the SA 700 auditor opinion - tangible and intangible assets, inventory, loans, deposits, statutory liabilities, unrecorded income, fraud, related parties, internal audit, cash losses, and group-CARO qualifications.

Content is reviewed quarterly for accuracy.

Statutory audit applicability under Indian law is the most-misunderstood compliance topic for first-time founders. The Companies Act 2013 imposes a blanket requirement on every company regardless of size; the LLP Act 2008 uses turnover and contribution thresholds; tax audit under Section 44AB of the Income-tax Act 1961 is a separate engagement with separate thresholds.

Who needs a statutory audit

• Every private limited company under Section 139 - regardless of turnover, profit, or operational status; even a newly incorporated company with zero transactions must appoint an auditor.
• Every one person company (OPC) under Section 139 - same as private limited; OPC is exempt from CARO 2020 reporting but not from statutory audit itself.
• Every public limited company - listed or unlisted; listed companies face additional auditor rotation under Section 139(2).
• Every Section 8 company (not-for-profit) - no exemption based on size or donation receipts.
• Every foreign company under Section 379 - statutory audit covers Indian business operations.
• LLPs above Rs 40 lakh annual turnover OR Rs 25 lakh capital contribution under Section 34 of the LLP Act 2008 read with Rule 24(8) of LLP Rules 2009.

Statutory Audit Applicability Matrix

Look up your entity type to find the audit requirement, governing section, and Patron service tier.

For a written applicability opinion that tests your CIN or LLPIN against the right framework, call +91 945 945 6700 or request a scoping call.

Patron's workpaper file is structured around SA 230 documentation requirements. Each engagement leaves a defensible audit trail that satisfies internal review, ICAI quality review, and NFRA inspection where applicable.

• Section A - Engagement and planning documents: engagement letter, audit strategy, materiality memo, team allocation, time budget.
• Section B - Risk assessment workpapers: entity-and-environment understanding, control walkthroughs, fraud risk assessment, significant account scoping.
• Section C - Substantive testing workpapers: by significant account, with sample selection rationale, vouchers tested, exceptions noted, and conclusion.
• Section D - CARO 2020 testing matrix: 21 clauses with test design, evidence reviewed, exceptions, and clause-by-clause conclusion.
• Section E - Reporting and review: management representations, going-concern memo, financial statement closure, partner review notes, sign-off checklist.
• Section F - UDIN and delivery: UDIN registration screenshot, signed auditor's report, AOC-4 filing receipt, retention archive note.

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free Statutory Audit consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

Client testimonials

"Our Series B due-diligence team flagged 14 issues with the previous auditor's report. Patron re-audited the year in 35 working days with documented workpapers. 12 of the 14 issues cleared on evidence; the deal closed at the original valuation."

- CFO, Sunlectric Industries (anonymised), FY 2024-25 audit client

"As a newly incorporated tech company we were quoted Rs 8,000 by a local CA. Patron quoted Rs 38,000 and explained why. After our first VC pitch our investors specifically praised the audit workpaper quality."

- Founder, SaaS company, Bengaluru, FY 2025-26 client

Four-Office City Signal: With offices in Pune, Mumbai, Delhi, and Gurugram, Patron Accounting serves statutory audit clients across India - including on-site inventory observation, branch audit coordination, and group consolidation work.

Statutory audit connects to several Patron service lines across the engagement lifecycle:

• Statutory Audit (transactional) - the year-by-year audit engagement and ADT-1 / AOC-4 filing service.
• Tax Audit under Section 44AB - separate Income-tax Act audit for companies and LLPs above turnover thresholds.
• Appointment of Auditor - ADT-1 filing for first auditor and subsequent appointments.
• Private Limited Company Compliance - annual retainer covering ongoing ROC, MGT-7, AOC-4, and audit coordination.
• Pvt and LLP Compliance - combined retainer for groups running both companies and LLPs with separate audit triggers.
• Backlog Filings Cleanup - 2-5 year ROC backlog cleanup under CCFS-2026 for clients needing back-dated audited financials.
• Compliance Calendar - month-by-month tracker pinned to audit, AGM, ADT-1, AOC-4, and ITR deadlines.

City Coverage

Patron statutory audit teams operate from offices in Pune (HQ), Mumbai, Delhi, and Gurugram, with travel coverage for inventory observation and branch audits across India. City-specific service pages:

• Statutory Audit Firm in Pune (HQ)
• Statutory Audit Firm in Mumbai
• Statutory Audit Firm in Delhi
• Statutory Audit Firm in Gurugram

Companies Act 2013 - Section 139 - appointment of auditor (5-year term, first auditor 30-day window, rotation for listed companies). Section 141 - eligibility, qualifications, and disqualifications. Section 143 - powers and duties of auditors (including 143(3)(i) IFC reporting, 143(11) CARO, 143(12) fraud reporting). Section 144 - prohibited services (auditor cannot also do bookkeeping, internal audit, actuarial, investment, management for the same client). Section 147 - penalty for auditor default. Statute reference: indiacode.nic.in.

Companies (Audit and Auditors) Rules 2014 - Rule 3 - manner of appointment; Rule 4 - conditions for appointment; Rule 5 - companies subject to rotation; Rule 12 - manner of casual vacancy.

CARO 2020 - G.S.R. 175(E) dated 25 February 2020. Applicable to all statutory audits commencing on or after 1 April 2021 (FY 2021-22 onwards) per ICAI Guidance Note. 21 reporting clauses. Exempt entities: OPC, small company, banking, insurance, Section 8, and private companies meeting size criteria. MCA portal: mca.gov.in.

ICAI Standards on Auditing (SA series) - SA 200 overall objectives; SA 210 agreeing terms; SA 220 quality control; SA 230 audit documentation; SA 240 fraud; SA 300 planning; SA 315 risk assessment; SA 320 materiality; SA 330 audit response; SA 450 evaluation of misstatements; SA 500 audit evidence; SA 530 sampling; SA 570 going concern; SA 700/705/706 auditor's report; SA 720 other information.

NFRA oversight - National Financial Reporting Authority constituted under Section 132 of Companies Act 2013. Oversees audits of listed companies, banks, insurance companies, and large public-interest entities. Conducts audit-quality inspections and disciplinary action.

UDIN under ICAI mandate - Every audit report, certificate, and signed document by a practising CA must carry a Unique Document Identification Number registered on the ICAI UDIN portal. Mandatory for statutory audit reports since 1 July 2019. ICAI portal: icai.org.

LLP audit framework - Section 34(4) of LLP Act 2008 read with Rule 24(8) of LLP Rules 2009 - audit mandatory if turnover exceeds Rs 40 lakh OR contribution exceeds Rs 25 lakh in any financial year. Below thresholds, LLP audit is voluntary but books of account remain mandatory.

AOC-4 filing under Section 137 must happen within 30 days of AGM. AGM must happen within 6 months of FY end (Section 96) - for FY 2025-26 ending 31 March 2026, AGM is due by 30 September 2026; AOC-4 by 30 October 2026. ADT-1 under Section 139 must be filed within 15 days of audit appointment.

Late filing accrues Rs 100 per day per form additional fee with no cap. Three consecutive years of default triggers Section 164(2) director disqualification.

Engaging a partner-reviewed CA firm with documented workpapers protects against ROC, NFRA, M&A diligence, and ICAI quality review exposure.

Statutory audit is the most-mandated yet most-variable corporate compliance engagement in India. Every company needs one; the quality gap between providers ranges from Rs 5,000 commodity certificates to Big 4 Rs 5 lakh-plus engagements.

Patron Accounting occupies the partner-reviewed mid-tier - SA-compliant methodology, documented workpapers, CARO 2020 21-clause testing, senior CA review, and UDIN-verified reports - at fixed fees from Rs 35,000. The Sunlectric case showed that a defensible audit is a fundraising asset, not just a regulatory checkbox.

National coverage through offices in Pune (HQ), Mumbai, Delhi, and Gurugram. Book a free 30-minute scoping call and get a fixed-fee quote within 24 hours.