Statutory Audit Services
Let us define statutory audit is an independent examination of the financial Statements of Organizations. In performing this role,the auditor’s role is to report on whether the financial statements issued by the organization are ‘true and fair’, and comply with other legal and regulatory demands.
Statutory audit requirements
In Nigeria, small companies are exempted from Statutory Audit, courtesy of the Finance Act 2020.
Under the Act, small enterprises with turnover of less than N25 Million are now exempt from paying company income tax, subject to timely filing of their Company Income Tax returns and therefore having their Accounts Audited.
The Companies and Allied Matters Act (CAMA) 2020 defines a small company as a private company having an annual turnover and net asset value of not more than N120,000,000 and N60,000,000 respectively, it has no foreigner as its member and where the company has a share capital, the directors hold at least 51% of the share capital.
Any other company must have its accounts statutorily audited.
However, a Company exempted by Law from having its Financial Statements Statutorily Audited may still have need to engage an Audit for the value addition and assurance the report offers.
Public-Interest Organization require Statutory Audits
Certain companies, whatever their size, are always subject to a statutory audit in order to ensure transparency and efficiency. These include:
- Banks or investment firms
- Insurance companies
- Brokerage firms
- Public companies
- Investment Bankers
- Pension Funds Administrators/Pension Funds Custodians
Scope of Statutory Audit
At Perrys, we work hard to provide an exceptional audit service, developing a deep understanding of individual businesses and offering proactive advice and insight that goes beyond the basic requirements.
We work to offer you benefits of audit and utilize the various audit tools of re-performance, calculations, vouching, substantive & compliance testing, review of controls and systems to obtain audit evidence. You are assured of the best benefits and insights.
Statutory Audit to cover the areas ensuring that,
- a) Transactions are recorded as International Financial Reporting Standards and are booked to proper accounting heads.
- b) Goods and services have been procured in compliance with law
- c) Transactions are duly supported by proper supporting documents.
- d) Propriety of the transactions.
- e) Checking the maintenance of books of accounts and records.
- f) Checking the bank reconciliation statements.
- g) Checking of component wise, category-wise and account head wise expenditures.
- h) Checking of investments, short term deposit etc. made from time to time.
- i) Checking of various taxes/statutory compliance.
- j) Verification of fixed deposits records and checking of interest received.
- k) To check all statutory records registers including Minute Books and to see that accounting effects of all the decisions taken at the Meetings of Board of Drectors /relevant Committees or Core Groups are given in the Books of Account.
- l) To give executive summary incorporating all points/matters; which are of very important nature.
- Financial Books
(a)Verification of Bank Book Journal, Vouching of Imprest Cash.
(b)Scrutiny of General Ledger, Staff Advance Registers, Commenting on loan outstanding entries, etc.
(c) Verification of cash, cheques on hand etc. as on 31st of December every year.
(d)Verification of all computer vouchers and sheets ensure correct coding and accounting head. (e)Scrutiny of general ledger and Verification of Income and Expenditure Statement, and Balance sheet and other Schedules.
(f) Verification of Salary/ Consultancy payments, etc., and verification of submission of various return to the competent authority in time.
(g)Verification of all financial information completely, promptly and after the necessary authorisation was recorded.
- Comprehensive audit
The areas covered by comprehensive audit may cover comparison of the results shown in the current period financial statements with prior periods and if available, with budgets and forecasts, investment decisions, delegation of financial powers and management of information systems, organisational effectiveness, management of equipment, plant and machinery etc. 4. Accounting policy & standard
(a)To review and help the management in implementing proper accounting procedures, internal check control and computerized systems.
(b)Review of Accounts.
(c) Check all recorded entries comply with accounting standard.
- System Improvement
Report any lacuna noticed in the existing procedures and suggest improvement. Any duplication of work noticed or work or unnecessary data noticed will be highlighted and reported.
- Audit Certificate/Audit Opinion-
(a) Audit Certificates and issue any other certificate as may be required by the company from time to time without any additional fee to be paid by the society.
(b) Statements in annual / audit report that describes the work of the Company and reporting on the adequacy of statements.
Review of the compliance of previous audit objections raised (if any) and have to verify or comment on the supporting documents/ vouchers submitted at latter stage, to settle the audit qualifications in the Statutory Audit report of this assignment.
- Reporting after finalization of Audit,
Submit Audit Report on the Accounts Audited.
Prepare and file the Companys tax returns with the authority and also appear before the Income Tax officer, on behalf of the Company, to get necessary assessment order, as and when the tax scrutiny happens.
Find out more about Matthew Ogagavworia & Company(Chartered Accountants), Statutory Audit Service.
As a leading Chartered Accountants with seven branches across central London and Kent, we have many years’ experience carrying out both statutory and non-statutory audits. As top Auditors and Chartered Accountants in Nigeria, we have offered both statutory and non-statutory audit to clients in both private and public sector. Our Audit & Assurance team is made of up persons with requisite skills to add value to your business.
Please contact us for in-depth advice on this subject, including whether your firm meets the government’s exemption criteria.
We look forward to having a conversation with you on your next statutory audit service in Lagos Nigeria.
To learn more how we can help you achieve your vision on starting on any of our services discussed here, please reach us now on 08023200801, email firstname.lastname@example.org or send us a detailed request by completing our enquiry form