secretarial audit

What is the difference between secretarial audit and statutory audit?

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In the world of corporate governance and financial reporting, audits play a crucial role in ensuring transparency and accountability. Two commonly performed audits are Secretarial Audit and Statutory Audit. While both are important, they serve different purposes and are conducted by different professionals. Secretarial Audit and Statutory Audit are distinct processes that evaluate different aspects of an organization’s operations and compliance. By comprehending their unique characteristics, businesses can enhance their understanding of the audit landscape and fulfill their obligations effectively. So, let’s explore the differences and significance of the two in greater detail.

Let’s delve into the details and understand the key differences between Secretarial Audit and Statutory Audit:


  • Secretarial Audit: It is primarily focused on assessing the compliance of a company with various legal and regulatory requirements. It examines whether the company has complied with the provisions of company law, corporate governance guidelines, and other applicable laws and regulations.
  • Statutory Audit: It, on the other hand, is conducted to examine the financial records, statements, and transactions of an organization to ensure their accuracy, reliability, and adherence to accounting standards and applicable laws. The objective is to express an opinion on the fairness of the financial statements.
secretarial audit


  • Secretarial Audit: It is mandatory for certain classes of companies as prescribed by the regulatory authorities. Generally, large companies, listed companies, and companies engaged in specific industries or activities are required to undergo secretarial audit.
  • Statutory Audit: It is mandatory for all companies, regardless of their size or nature of business, as per the applicable company laws or regulations. The audit is typically conducted by external auditors who are independent of the organization being audited.


  • Secretarial Audit: It encompasses a broad range of areas, including compliance with company law provisions, board and general meetings, maintenance of statutory registers, filing of various forms and returns, corporate governance practices, and adherence to other applicable laws and regulations.
  • Statutory Audit: It primarily focuses on the financial statements and records of an organization. It involves examining the books of accounts, verifying the accuracy of transactions, assessing the accounting policies and practices followed, evaluating internal controls, and expressing an opinion on the financial statements’ fairness and compliance with accounting standards.

Auditor’s Qualification:

  • Secretarial Audit: It is conducted by a qualified company secretary who possesses expertise in company law, corporate governance, and regulatory compliance. The auditor ensures that the company has complied with all the legal requirements and provides an independent opinion on the company’s adherence to applicable laws and regulations.
  • Statutory Audit: It is performed by a qualified chartered accountant or a firm of chartered accountants. They have in-depth knowledge of accounting principles, auditing standards, and financial reporting. Their role is to express an unbiased opinion on the financial statements’ accuracy and compliance with accounting standards and laws.
secretarial audit

In conclusion, secretarial audit and statutory audit serve distinct but equally important purposes in the corporate world. Secretarial audit ensures compliance with legal and regulatory requirements, focusing on company law provisions, corporate governance practices, and adherence to applicable laws and regulations. On the other hand, statutory audit scrutinizes the financial statements, transactions, and accounting practices of an organization to provide an unbiased opinion on their accuracy and compliance with accounting standards and laws.

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Both audits play a critical role in maintaining transparency, accountability, and good corporate governance. Secretarial audit helps companies demonstrate their commitment to legal and regulatory compliance, ensuring that they fulfill their obligations and avoid penalties or legal consequences. It provides valuable insights into the company’s adherence to corporate governance guidelines, which enhances its reputation and investor confidence. You may find some best services related to proprietary and secretarial, secretarial audit applicability and corporate advisory services in Delhi.

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