Statutory Audit Checklist for Private Limited Companies

Why preparation matters more than most founders expect

Most of the delay and back-and-forth in a statutory audit doesn't come from complex accounting issues — it comes from documentation that's scattered, incomplete, or unreconciled when the audit begins. A well-prepared company can often complete its audit meaningfully faster than one that starts pulling records together only once the auditor asks.

Financial records to have ready

• Finalised trial balance and general ledger for the full financial year
• Bank statements for all accounts, with reconciliations already prepared
• Fixed asset register, with additions/disposals during the year clearly documented
• Debtors and creditors ageing, with confirmations obtained where practical
• Inventory records and valuation working, if applicable

Statutory and compliance documents

• Board meeting minutes and resolutions passed during the year
• Statutory registers (members, directors, charges)
• Prior year's audited financials and audit report
• GST returns and TDS returns filed during the year, reconciled to the books
• Loan agreements and related confirmations, for any borrowings

Areas that commonly generate audit queries

• Related-party transactions without clear documentation or board approval
• Revenue recognition timing that doesn't clearly match the underlying contracts
• Provisions and accruals that aren't supported by a clear working
• Differences between book and GST-return turnover that haven't been reconciled

A pre-statutory review can help

Many businesses find it worthwhile to have a preparatory review before the main statutory audit begins — essentially a dry run that surfaces these issues while there's still time to fix them, rather than mid-audit when it slows everything down.

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