Documentation Required for Statutory Audit – A Practical Guide

A Statutory Audit is a legally mandated examination of an organization’s financial records to determine whether they are accurate and fair as per the applicable laws and regulations.

In India, statutory audits are primarily governed by the Companies Act, 2013, and conducted in accordance with auditing standards issued by the Institute of Chartered Accountants of India (ICAI).

The success of a statutory audit — both in terms of audit quality and timeliness — heavily depends on the availability, accuracy, and completeness of documentation provided to the auditor.

Proper audit documentation not only facilitates smooth audits but also ensures compliance, transparency, and accountability.

Categories of Documents Required for Statutory Audit

The documentation required can be broadly categorized into:

1. Financial Records
2. Legal and Statutory Registers
3. Taxation Records
4. Payroll and HR Records
5. Fixed Assets and Depreciation
6. Bank and Loan Documents
7. Internal Control Documents
8. Miscellaneous and Industry-Specific Documents

1. Financial Records

Document	Purpose
Trial Balance	Base document to begin the audit; verifies the balancing of accounts
General Ledger	Detailed records of all financial transactions categorized by accounts
Cash Book & Bank Book	Detailed day-wise records of cash and bank transactions
Sales Register	Complete record of all sales made during the period
Purchase Register	Complete record of all purchases made
Journal Entries	Supporting vouchers and reasons for manual adjustments
Credit Notes / Debit Notes	Adjustments made to sales/purchase due to returns or price differences
Expense Ledger	Records of direct and indirect expenses incurred
Loan & Interest Register	Details of borrowings and interest calculations

2. Legal and Statutory Registers (under Companies Act)

Document/Register	Applicable Section	Purpose
Minutes Book (Board/AGM/EGM)	Sec 118	For verifying key decisions, approvals, and policies
Share Register / Member Register	Sec 88	Details of shareholders, allotments, transfers
Register of Directors & KMP	Sec 170	Personal and professional details of directors
Register of Charges	Sec 85	Details of secured borrowings or assets pledged
Register of Contracts	Sec 189	Related party transactions and disclosures
MOA & AOA	Incorporation Document	Governing documents of the company
Certificate of Incorporation	ROC / MCA	Basic legal proof of existence

3. Taxation Records

a. Income Tax

• PAN and TAN details
• Computation of taxable income
• Income tax returns (ITR-6 or applicable)
• Tax Audit Report (Form 3CD)
• Tax payment challans and refund orders
• TDS Returns (Form 24Q/26Q/27Q) and Form 16/16A
• Notice/responses related to income tax assessments

b. Goods and Services Tax (GST)

• GST registration certificate
• GSTR-1, GSTR-3B, and GSTR-9 filings
• GST reconciliation with books and GSTR-2B
• GST ledger (input credit, liability, and cash)

c. Other Applicable Taxes

• PF & ESI challans and returns
• Professional tax (if applicable)
• Excise/Customs records (for exporters/importers)

4. Payroll and HR Documentation

Document	Purpose
Employee Master List	Details of employees, designation, joining, and status
Attendance and Leave Records	For verifying salary payments and leave encashments
Salary Structure & Payslips	Monthly breakup of payments including deductions
TDS Deducted on Salaries (Form 16)	TDS compliance and reconciliation
PF, ESI Returns and Payments	Statutory compliance proof
Bonus, Gratuity, Incentive Records	For audit of provisions and year-end liabilities

5. Fixed Assets and Depreciatio

Document	Purpose
Fixed Asset Register	Complete detail of capital assets with date, cost, location, etc.
Depreciation Schedule	Calculation based on useful life as per Companies Act or IT Act
Invoice Copies of Major Assets	Original purchase verification
Capitalization Records	Project completion and capitalization entries
Disposal/Impairment Records	Records of scrapped, sold, or impaired assets

6. Bank and Loan Documentation

Document	Purpose
Bank Statements (All Accounts)	For bank reconciliation and verification of transactions
Bank Reconciliation Statements (BRS)	Reconciles company’s cash book with bank statement
Loan Agreements	Terms and conditions verification, interest rate checks
Interest Certificates from Banks	Verifying interest expenses
Bank Charges Statements	Audit of indirect costs charged by banks

7. Internal Control & Audit Trail Records

Document	Purpose
Internal Audit Reports	Helps external auditor rely on internal controls
Risk Registers	Identifies and evaluates financial risks
Approval Matrices and DOA (Delegation of Authority)	Ensure compliance with authorization limits
ERP/Software Logs	Verifying system-based approvals and edit history
Inventory Valuation Reports	Cross-verification with stock registers and physical verification

8. Miscellaneous and Industry-Specific Documentation

Document	Applicable Sector/Use
Project-wise Cost Reports	Construction, EPC, IT companies
Export/Import Licenses & Documents	Logistics, Textile, Pharmaceutical, etc.
Environmental Compliance Certificates	Manufacturing, Chemicals, etc.
Insurance Policies	Factory, machinery, marine, D&O, fire, etc.
Litigation Registers & Legal Notices	For provisioning and disclosures

Auditor’s Role and Expectations

Auditors expect:

• Full, timely access to the above documents
• Accuracy and traceability of all entries to source documents
• Management explanations for material variances or changes
• Reconciliations to be complete and verifiable
• Compliance documentation in proper formats

Having a complete set of audit-ready documentation is crucial not only to meet statutory obligations but also to avoid penalties, improve investor confidence, and maintain good corporate governance.

Proactive companies often prepare an “Audit Documentation Folder” for each financial year to speed up the audit process.

Whether you’re a startup or a listed company, the better your documentation, the smoother your statutory audit will be.