Hello sir I'm new to the subject as i have just started studying.
Statutory audit is mandated by legislation is some countries therefore companies are compelled to perform it. However even if not mandatory in some countries by law, management may conduct an external audit for its benefits.
My ques is ..if a company has already performed statutory audit, would it perform external audit also ? or in this case statutory and external audits both will be same ? What are differences b/w them (if any) apart from legal requirement.
Thanks
Ask the Tutor ACCA AA
Statutory Audit
There are two types of audit - internal (within the entity) and external (independent). Generally an entity will only go to the expense of an external audit of financial statements where there is a legal (statutory) requirement for one. So a statutory audit (e.g. of a company) is performed by an external auditor who is approved (i.e. qualified and registered) to carry out such a statutory audit (a "statutory auditor").
In ACCA AA, you would assume all references to audit/auditor to mean external/statutory (internal audit/auditor/function will always have the word internal).
There are two types of audit - internal (within the entity) and external (independent). Generally an entity will only go to the expense of an external audit of financial statements where there is a legal (statutory) requirement for one. So a statutory audit (e.g. of a company) is performed by an external auditor who is approved (i.e. qualified and registered) to carry out such a statutory audit (a "statutory auditor").
In ACCA AA, you would assume all references to audit/auditor to mean external/statutory (internal audit/auditor/function will always have the word internal).
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