Understanding on Revenue Audit and difference with Statutory Audit.

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Revenue audit focuses on verifying the accuracy of revenue transactions, while statutory audit is a legal requirement to ensure financial statements are accurate.

Revenue audit is conducted to ensure that revenue transactions are accurately recorded and reported.
Statutory audit is a legal requirement to ensure that financial statements are accurate and comply with accounting standards and regulations.
Revenue audit focuses on revenue recognition, sales returns, discounts, and allowances.
Statutory audit focuses on verifying the accuracy of financial statements, including balance sheets, income statements, and cash flow statements.
Revenue audit is usually conducted by internal auditors or external auditors hired by the company.
Statutory audit is conducted by external auditors who are independent of the company.
Revenue audit is not mandatory, but it is recommended to ensure the accuracy of financial records.
Statutory audit is mandatory for all companies, and failure to comply can result in legal penalties.
Revenue audit is more focused on specific revenue transactions, while statutory audit is a comprehensive review of all financial records.
Examples of revenue audit include verifying the accuracy of sales transactions, checking for unrecorded revenue, and ensuring that revenue is recognized in the correct period.
Examples of statutory audit include verifying the accuracy of financial statements, checking for compliance with accounting standards, and ensuring that all financial records are complete and accurate.

Understanding on Revenue Audit and difference with Statutory Audit.

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