Introduction

A statutory audit is a mandatory annual requirement for most companies under the Companies Act, 2013. It ensures that financial statements present a true and fair view of the company’s financial position. As businesses move into Financial Year 2024–25, audit preparation has become even more important due to evolving accounting standards, GST compliances, MCA updates, and mandatory audit trail requirements.

A well-structured audit checklist helps businesses avoid delays, reduce queries from auditors, ensure smooth verification, and remain fully compliant with statutory norms.

This guide provides a 2025-ready audit preparation checklist covering ledgers, reconciliations, tax records, and essential documentation.

What Is a Statutory Audit?

A statutory audit is an independent examination of a company’s financial records conducted by a qualified Chartered Accountant (CA) as mandated by law.

The purpose of the audit is to:

✔ Ensure accuracy of financial statements

✔ Verify compliance with accounting standards

✔ Detect misstatements or irregularities

✔ Strengthen financial controls

✔ Provide assurance to shareholders, lenders, and regulators

Complete Statutory Audit Checklist (2025 Edition)

1. Basic Company Information & Corporate Records

Prepare and organise:

• Certificate of Incorporation

• MoA & AoA

• Board resolutions

• Shareholding register

• Minutes of Board & AGM meetings

• Statutory registers (as applicable)

This requirement applies to all companies, including private, public, small, and OPCs

2. Trial Balance & Ledgers

Ensure the following are ready:

• Current year trial balance

• Ledger-wise details

• Adjusting entries (provisions, depreciation, accruals)

• Opening balance verification

• Year-end closing entries

3. Bank Records & Reconciliation

A major audit focus area.

✔ Bank statements for the full year

✔ Bank Reconciliation Statements (BRS) for each account

✔ Cheque books, payment vouchers, NEFT/RTGS proofs

✔ Cash book & petty cash records

4. GST Compliance Documentation

GST verification is crucial for 2025 audits.

Ensure availability of:

• GSTR-1, GSTR-3B, GSTR-9, GSTR-2A/2B

• Sales & purchase registers

• E-way bill summaries

• Reconciliation of books vs. GST portal

• Input tax credit (ITC) workings

• Ledger match: output tax, ITC, liabilities

5. TDS & Income Tax Records

Keep ready:

• TDS returns (24Q, 26Q, 27Q)

• Challans & deductions summary

• Form 16 & 16A issued

• Advance tax workings

• Income tax computation report

6. Fixed Assets Register

Includes:

• Asset addition & disposal details

• Depreciation schedule

• Supporting invoices

• Physical verification report

7. Accounts Receivable (Debtors)

Prepare:

• Customer-wise ageing report

• Debtor balance confirmations

• Doubtful debts provision

• Reconciliation with sales ledger

8. Accounts Payable (Creditors)

Prepare:

• Vendor-wise ageing summary

• Advance payments list

• Vendor balance confirmations

• Reconciliation with purchase ledger

9. Inventory Verification

Important for product-based companies.

Documents required:

• Stock register

• Physical stock count report

• Valuation workings

• Slow-moving/obsolete inventory summary

10. Payroll & HR Records

Keep ready:

• Salary register

• Attendance records

• PF/ESI challans

• Employment contracts

• Bonus, gratuity, leave encashment provisions

11. Loan, Borrowings & Interest Records

Include:

• Loan agreements

• Interest calculation sheets

• Bank sanction letters

• Outstanding loan summaries

• EMI schedules

12. Internal Controls & Audit Trail Logs

As per MCA guidelines:

• Audit trail logs must be maintained

• Access control policies

• Maker-checker workflows

• Internal audit reports (if any)

13. Supporting Financial Documents

Prepare:

• Vendor bills & purchase vouchers

• Sales invoices & delivery challans

• Expense receipts

• Asset purchase bills

• Rent agreements

• Insurance policies

14. Year-End Financial Statements

Final reporting pack should include:

• Profit & Loss statement

• Balance sheet

• Cash flow statement

• Notes to accounts

• Audited statements of previous year

Best Practices for Smooth Audit Completion

✔ Close books within the first week of April

✔ Reconcile ALL ledgers monthly

✔ Maintain detailed working papers

✔ Respond to auditor queries promptly

✔ Use MCA-compliant accounting software

✔ Maintain proper documentation digitally

Conclusion

Preparing for a statutory audit doesn’t have to be stressful. With a structured checklist, organised documentation, and proactive compliance, businesses can ensure a smooth audit process and stronger financial governance.

Bisways Consulting Group supports companies with year-end closing, audit preparation, documentation, GST reconciliation, and complete statutory compliance for FY 2024–25.