Expert verified A statutory audit report is more than just a formal document. The report encapsulates the financial health, governance practices, and risk profile of an organization.
But what happens after the audit fieldwork is complete? How does this report go from the auditor’s desk to the regulators? What timelines apply? And what are the key responsibilities of both the auditor and the company in ensuring smooth and compliant submission?
This blog breaks down the statutory audit report submission process into structured, manageable stages, from finalization to filing, for giving you clarity, depth, and practical insight.
What Is a Statutory Audit Report?
A statutory audit report is the formal opinion issued by a Chartered Accountant (or an audit firm) after conducting an independent examination of a company’s financial statements.
This report provides assurance that the financial statements:
- Are free from material misstatement,
- Have been prepared in accordance with applicable accounting standards, and
- Present a true and fair view of the company’s financial position.
The report is submitted as part of the annual regulatory filings with the Ministry of Corporate Affairs (MCA) and sometimes shared with banks, investors, or internal stakeholders.
Who Needs to Submit a Statutory Audit Report?
Under the Companies Act, 2013, every company is required to have its financial statements audited and to file the audit report with the Registrar of Companies (ROC). This includes:
- Private limited companies
- Public limited companies
- Section 8 (non-profit) companies
- Limited Liability Partnerships (in specific cases)
- Foreign companies with a place of business in India
Overview of the Statutory Audit Report Submission Lifecycle
The audit report submission is not a one-step activity. It involves collaboration between the auditor and company management, and unfolds through the following stages:
- Finalization of Financial Statements
- Preparation and Signing of the Audit Report
- Board Approval
- Filing with the Registrar of Companies (ROC)
- Archiving and Communication
Let’s walk through each stage.
1. Finalization of Financial Statements
Before the audit report can be issued, the financial statements must be finalized. This includes:
- Balance Sheet
- Statement of Profit and Loss
- Cash Flow Statement
- Statement of Changes in Equity (if applicable)
- Notes to Accounts
- Significant Accounting Policies
The management is responsible for preparing these statements and ensuring all adjustments, disclosures, provisions, and reconciliations are in place. The auditors will review these during fieldwork and raise queries if needed.
Tip: Finalize books and get internal approvals by May or mid June to give sufficient time for audit review.
2. Preparation and Signing of the Audit Report
Once the auditors complete their examination, they prepare the Audit Report, which generally includes:
- Opinion Paragraph: Unqualified, qualified, adverse, or disclaimer
- Basis for Opinion
- Emphasis of Matter or Key Audit Matters
- Report on Other Legal and Regulatory Requirements
The report must be:
- Signed by the audit partner
- Dated as on the date of the Board approval of financial statements
- Printed on the auditor’s letterhead
- Mentioning UDIN (Unique Document Identification Number) – mandatory under ICAI guidelines
For companies under CARO (Companies Auditor’s Report Order), additional details are included regarding:
- Fixed assets
- Inventory
- Loans and advances
- Statutory dues
- Related party transactions, etc.
3. Board Approval and Sign-Off
Once the audit report is finalized, the next step is for the Board of Directors to approve the financial statements along with the auditor’s report.
What Happens at the Board Meeting?
- Review and adopt the audited financials
- Approve the Board’s Report and Annexures (like MGT-9, CSR disclosures)
- Authorize directors or officers to sign and file the documents
The audit report date must match the date of Board approval, as per auditing standards.
Key People Involved in Signing:
- Auditor: For the audit report
- Directors (at least two) and Company Secretary (if any): For financial statements and Board’s Report
4. Filing with ROC via MCA Portal
Once the Board has approved the documents, the company must submit the financial statements and audit report to the ROC through the MCA portal using specific e-forms.
Key MCA Forms for Submission:
AOC-4 (or AOC-4 XBRL for applicable companies)
- Purpose: Filing audited financial statements
- Attachments:
- Audit Report
- Audited Financial Statements (PDF and XBRL if applicable)
- Notes to Accounts
- Board’s Report
- CSR Report (if applicable)
- Due Date: Within 30 days from the date of the Annual General Meeting (AGM)
MGT-7 (or MGT-7A for small companies)
- Purpose: Filing the Annual Return
- Due Date: Within 60 days from the date of AGM
Penalties for Delay:
If a company fails to file AOC-4 within the due date:
- ₹100 per day of default
- No upper cap—penalty keeps accumulating
5. Post-Filing Compliance and Archival
After submission, the company should:
- Verify the status of forms on the MCA portal
- Maintain digital and physical copies of signed reports and financials
- Respond to any queries or scrutiny notices from the ROC
- Share the audit report with banks, investors, or lenders if contractually required
- Upload reports to the company website (mandatory for listed companies)
Typical Challenges in Statutory Audit Report Submission
- Delays in Finalizing Books: Late provisioning or reconciliations slow down the audit
- Inconsistent Disclosures: Mismatch between financials and Board’s Report can delay sign-off
- Form Errors on MCA Portal: Validation errors due to incorrect tagging or PDF formatting
- UDIN Mismatches: Audit report must be uploaded only after UDIN is generated and validated
- Non-Coordinated Signatures: All signatories (auditor, directors, CS) must sign consistently and correctly
Practical Tips for a Smooth Submission
- Set Internal Timelines for audit closure by the mid of August
- Use Checklists to track MCA form requirements and supporting documents
- Engage the Company Secretary Early to coordinate e-filing
- Pre-validate MCA forms before final submission
- Generate UDIN in advance and verify its activation before uploading the report
- Store backup copies of all signed documents and filing receipts
Real-Life Example: Lessons from the Field
Company: A mid-sized services firm in Bangalore
Audit Year: FY 2023–24
Issue: The audit report was ready by 10th August, but the board meeting for approval was Provided on 25th August. The AGM was held on 30th September, and AOC-4 was filed on 2nd November—33 days later.
Result:
- Penalty of ₹3,300 was levied by MCA
Takeaway: Early coordination between auditors, the company secretary, and directors is critical to avoid late filing penalties and administrative hassle.
The submission of a statutory audit report is not a mechanical exercise. It’s the final step in a detailed compliance chain and requires coordinated effort, attention to detail, and timely action.
From audit finalization to ROC filing, each stage is time-bound and process-driven. Delays or mistakes can attract regulatory penalties and damage stakeholder confidence.
