Statutory audit
In one sentenceAn audit of the annual financial statements that the law requires of the business, carried out by a licensed external auditor, as opposed to an audit the business requests voluntarily.
Simply put
Some businesses are required by law to have audited financial statements, and these statements are also required when submitting them to official bodies such as the “Qawaem” platform. This is a statutory audit.
A business that is not required may request a voluntary audit because a bank or investor requires it; the work itself is similar, but the reason is different.
Example
A limited liability company appoints an external auditor every year to audit its statements, then submits the audited statements with the auditor's report by the statutory deadlines.
Don't confuse it with
Internal auditInternal audit is optional and serves management, while a statutory audit is external and required by law.