A statutory audit is a legally required review of the accuracy of a company's financial statements and records. The purpose of a statutory audit is 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.
It is a requirement under the Companies Act of Malaysia that every private limited company doing business in Malaysia must appoint an approved company auditor for auditing its accounts and reporting to the members of the company annually.