Statutory audit
A statutory audit is an audit required by applicable law or regulation. The entity’s eligibility, appointment, reporting and other requirements depend on the jurisdiction. The auditor obtains evidence and expresses an opinion under the applicable standards and framework.
Worked example
A company required by local law appoints a registered auditor to audit its annual financial statements.
Common mistake
A statutory audit provides reasonable assurance, not a guarantee that every transaction is correct or that the entity will remain solvent.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |