Statutory Audit


DEFINITION of 'Statutory Audit'

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.

BREAKING DOWN 'Statutory Audit'

For example, a state law may require all municipalities to submit to an annual statutory audit examining all accounts and financial transactions and to make the results of the audit available to the public. The purpose of such an audit is to hold the government accountable for how it is spending taxpayers' money.

  1. Unqualified Opinion

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  2. Unqualified Audit

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  3. Independent Auditor

    A certified public accountant who examines the financial records ...
  4. Audit

    1. An unbiased examination and evaluation of the financial statements ...
  5. Qualified Opinion

    A statement written upon the front page of an audit done by a ...
  6. Auditor's Report

    Recorded in the annual report, the auditor's report tests to ...
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  2. Do prepayments provide working capital?

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  3. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
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