Statutory
Compliance Audit

What is a Statutory Compliance Audit?

Statutory compliance entails adhering to the government's rules and regulations for India's payroll processing. TDS regulation, for example. Every company with employees earning more than a particular amount of money must deduct and pay TDS on their behalf. Noncompliance penalties, fines, and other repercussions may be imposed if this is not done. 

A statutory compliance audit is simply an evaluation of the organization's compliance status. It evaluates how well the entire organisational structure adheres to regulatory bodies' regulations. This audit identifies the compliance, security, access controls, policies, and risk management procedures that are in place.

Impact of Statutory Complaince Audit
 

1. Risk Assessment
Getting a statutory compliance audit or hiring statutory compliance services in India is a step in analysing your system. This allows you to evaluate the efficiency of your payroll system. You can determine whether or not you are abiding by the aforementioned laws and regulations. Several extra questions are addressed in addition to the required compliance audit answers:

• What are the system's inconsistencies?

• What are the flaws in the system?

• Are we following the payroll laws to the letter?

• Is the payroll department up to par?

• Are your tax calculations correct?

 

Knowing the answers to these questions will assist you in reducing the risks associated with non-compliance. For example, if there is a problem with the TDS structure, it is critical to discover it as soon as possible. This will assist you in resolving the problem and lowering the chance of penalties, fines, and other consequences.

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2. Non-compliance should be avoided at all costs.
Compliance is a separate category because it encompasses a wide range of topics.

To see if you're making any compliance blunders, you'll require a statutory compliance audit or statutory compliance services in India. You have offices in five states and one across international lines, for example. Your HR department is in charge of ensuring that all employees in each office are paid in accordance with the payroll system, employment rules, and tax requirements of the respective state. You are not allowed to tamper with this requirement.

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A statutory compliance audit can assist in identifying the flaws in this structure, allowing the HR team to correct the problem before it becomes a non-compliance penalty.

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3. Periodic Review

Aside from all of the benefits and features of the statutory compliance audit, it also allows you to assess your structure on a regular basis. It is easier to maintain accuracy when you examine your accounts, payroll operations, and other relevant activities on a frequent basis. This accuracy boosts the overall structure's efficiency, boosting your payroll department's performance.

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Why is Statutory Compliance Audit important?

Every organisation, without a doubt, needs to conduct a statutory compliance audit. This is because an audit assists you in maintaining compliance, creating a correct payroll structure, and reducing the system's risks and concerns on a regular basis.