Statutory audit
Definition
An audit required by law or regulation, conducted by an independent external auditor, with the objective of expressing an opinion on whether an organisation's financial statements present a true and fair view. Mandatory for most companies above statutory size thresholds in most jurisdictions.
Related terms
- Chain of custody
- The documented chronological record of who collected, handled, transferred, and examined a piece of evidence. For digital evidence, chain of custody includes...
- Forensic audit
- An examination of an organisation's financial records and systems conducted specifically to gather evidence for legal proceedings. Distinguished from a regular audit...
- ISA 240
- International Standard on Auditing 240, 'The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements,' issued by the IAASB. Sets...
- Reasonable assurance
- The high but not absolute level of assurance that a statutory auditor seeks to obtain before expressing an opinion. Reasonable assurance acknowledges...
- True and fair view
- The standard of financial statement presentation required by statutory audit frameworks in the UK, EU, India, and many Commonwealth jurisdictions. In the...
Explained in
- Statutory Audit Versus Forensic Audit: Key DistinctionsAn audit required by law or regulation, conducted by an independent external auditor, with the objective of expressing an opinion on whether an organisation's...