World usage[edit]
Main article: External auditor
In India, the term "statutory auditor" refers to an external auditor whose appointment is mandated by law. A "statutory audit" is a legally required review of the accuracy of a company's or government's financial records. The purpose of a statutory audit is the same as the purpose of any other audit - to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records and financial transactions.[1] The European Union has also made efforts to mandate statutory audits and statutory auditors on an EU-wide level.[2]