Question

How to do statutory audit of private companies practical?

Answer 1

The process of statutory audit is conducted by a practicing Chartered Accountant. The process of internal audit is described as a limited one and managed generally by a qualified person to audit the governance of an organization, manage risk etc. Statutory audit: It is as same as the purpose of any other type of 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.

Answer 2

Explanation:

In a private company,an audit is optional. Often private companies audit their accounts only when their owners need them for purposes of seeking credit or  additional shareholders.

In a public company, an audit is compulsory. This enables the many shareholders of a public company to see how the company is doing financially. To determine if it is well managed.