What do we learn of statutory audit in CA Articleship?
Hi, A "statutory audit" is a legally required review of the accuracy of a company's or government's financial records. The purpose of a statutory audit is the same as the purpose of any other audit - to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records and financial transactions. Key learnings from Statutory audit: This involves audit of the final accounts of the company – and is done once in a year. Such audit is considered prestigious, as those who go for such audits are well taken care of by the auditees. This even involves Auditors (including Articles) being taken on sight seeing trips, proper lodging and boarding arrangements, and every questions being properly replied by the Auditee. However this work would often include finalisation of accounts, where the client / auditee would consult the auditor before closing the books. Such statutory audits can be of any Company under the Companies Act or Banks (and Bank Branches), Insurance companies, Electricity Companies etc. Also, duration of statutory audit may differ from organisation to organisation. In some organisation it may take two – three months (which is a normal duration), in others it is done on a continuous basis through out the year, while in still others like bank branches such audit has to be finished in three to five days ! I got opportunity to be involved in statutory branch audits of Nationalised Banks, Insurance Corporations (both Life and Non Life), Regional Rural Bank (that time our firm was one of the Central Statutory Auditor of that RRB). T his was apart from statutory audit work relating to audit of different Private companies and and also a Govt Company.
1.The practical implications of the laws framed. 2.The problems faced on implementation of laws. 3.The actual statutory formats of the reports and financial statements. 4.The smart adjustments in the accounts. 5.Creation of provisions and their estimation. 6.Knowledge of taxation laws, statutory law, labour laws, industries laws, 7. Knowledge regarding Project financing, Internal audits,
Dear Friend, Articleship plays the vital role to become a smart and skilled CA. It is the main part of your CA course. What do we gain and learn is exactly how and what we do after becoming CA. During articleship one should endeavor to learn and gain as much as he can. **Mainly it depends on your choice of CA firm and exposure of that firm. However, in general, gist of work you can learn and knowledge you can gain are given as follows:-** . 1.The practical implications of the laws framed. 2.The problems faced on implementation of laws. 3.The actual statutory formats of the reports and financial statements. 4.The smart adjustments in the accounts. 5.Creation of provisions and their estimation. 6.Knowledge of taxation laws, statutory law, labour laws, industries laws, 7. Knowledge regarding Project financing, Internal audits, 8. Creating and formation of companies, Firms, LLP etc. 9. Bank audits, insurance audits , rules and regulations applicable to them. 10. Risk assessment process and control of Inforrmation technology of the company. Well the list goes on. It also depends upon how much you wish to learn.