A N M And Company

Statutory auditing services involve the examination and verification of an organization's financial statements, records, and transactions to ensure compliance with applicable laws, regulations, and accounting standards. These audits are typically conducted by external auditors who are independent of the organization being audited. Here's an overview of statutory auditing services:

Scope of Statutory Auditing Services:

1. Financial Statement Audit:

   • Examination of financial statements (balance sheet, income statement, cash flow statement) to ensure accuracy, completeness, and compliance with accounting standards (e.g., Generally Accepted Accounting Principles - GAAP).

2. Compliance Audit:

   • Review of the organization's operations and procedures to ensure compliance with applicable laws, regulations, and contractual agreements.
   • Verification of adherence to industry-specific regulations and standards (e.g., HIPAA compliance for healthcare organizations).

3. Internal Control Review:

   • Assessment of the effectiveness of internal controls and risk management processes.
   • Identification of weaknesses or deficiencies in internal control systems and recommendations for improvement.

4. Tax Audit:

   • Examination of tax returns and supporting documentation to ensure compliance with tax laws and regulations.
   • Verification of tax calculations, deductions, and credits.

5. Regulatory Audit:

   • Audit conducted to ensure compliance with specific regulatory requirements imposed by government agencies or regulatory bodies (e.g., Securities and Exchange Commission - SEC audits for publicly traded companies).

6. Special Purpose Audit:

   • Audit procedures conducted for specific purposes, such as due diligence for mergers and acquisitions, forensic investigations, or litigation support.

Process of Statutory Auditing Services:

1. Engagement Planning:

   • Understanding the scope and objectives of the audit.
   • Developing an audit plan and timeline.

2. Risk Assessment:

   • Identifying and assessing risks that may impact the audit.
   • Designing audit procedures to address identified risks.

3. Audit Fieldwork:

   • Conducting audit tests and procedures to gather evidence supporting the financial statements and compliance assertions.
   • Testing the effectiveness of internal controls and adherence to regulatory requirements.