Statutory audit is important for companies for the following reasons- Legal compliance- According to the Companies Act, 2013 and Companies (Audit and auditors) rules, 2014, all companies are mandated by law to conduct a statutory audit of their financial filings and documents. The government can impose hefty fines in the case of non-compliance. Authenticity- Conducting a statutory audit is important for a company because it increases the authenticity of the financial reports since they are verified by an experienced and qualified auditor. Minimizes risk of fraud- Conducting a statutory audit can minimize the risk of fraud in an organization as it is able to detect any and all inconsistencies and redundancies in the financial statements.