23
Oct
Statutory Audit Timeline: What Happens Month by Month
Most companies think of the statutory audit as something that happens in May and June. In practice, a smooth audit is the result of work spread across the whole year: planning before the year starts, interim checks mid-year, a clean year-end close, and a tight sequence of Board approval, AGM and MCA filings after it. When any step slips, the deadlines that follow get squeezed.
This guide sets out a practical statutory audit timeline for an unlisted Indian company with a 1 April to 31 March financial year, using FY 2026-27 as the example. It shows what typically happens each month, who is responsible and which dates are fixed by law.
What Is the Statutory Audit Timeline in India?
For a company with a 31 March year-end, audit planning and interim work run through the year, the year-end close and fieldwork happen in April to July, and the Board approves the audited financial statements before the AGM, which must generally be held within six months of year-end (by 30 September). Financial statements are then filed in Form AOC-4 within 30 days of the AGM, and the annual return in Form MGT-7 within 60 days of the AGM.
Fixed Legal Dates vs Practical Milestones
The Companies Act, 2013 does not set a separate deadline for completing the audit. It sets the dates around it, and the audit has to fit inside them:
| Requirement | Legal timing | FY 2026-27 example |
|---|---|---|
| Annual general meeting (Section 96) | Within 6 months of year-end (first AGM within 9 months) | By 30 September 2027 |
| Filing financial statements (Form AOC-4, Section 137) | Within 30 days of the AGM | About 30 October 2027 if the AGM is on 30 September |
| Annual return (Form MGT-7/MGT-7A, Section 92) | Within 60 days of the AGM | About 29 November 2027 if the AGM is on 30 September |
| Auditor appointment at AGM (Form ADT-1) | Within 15 days of the AGM | Only in a year when an auditor is appointed |
Swipe the table sideways to see all columns.
Everything else in this timeline is good practice rather than law. Listed companies follow much tighter SEBI timelines for results, and some regulated entities have their own reporting dates, so this guide is aimed at unlisted companies.
Month-by-Month Statutory Audit Timeline
Before the Year Starts (February–March 2026)
- Confirm the auditor’s term. Auditors appointed at an AGM hold office until the sixth AGM after appointment; check whether reappointment or rotation is due.
- Agree the engagement letter, scope and fees, including CARO 2020, IFC reporting and any tax audit.
- Check that the accounting software maintains an audit trail (edit log) that cannot be disabled, as required by Rule 3 of the Companies (Accounts) Rules, 2014.
April–June 2026 (Q1)
- Close and file the previous year’s work, and track open points from the last audit report and management letter.
- The auditor completes planning: understanding the business, risk assessment and materiality.
- Set up a monthly close calendar and reconciliation routine.
July–September 2026 (Q2)
- Prepare quarterly management accounts and reconcile bank, GST, TDS and payroll.
- For companies covered by IFC reporting, document key processes and controls and start walkthroughs.
- Resolve accounting policy questions early, such as revenue recognition for new contracts.
October–December 2026 (Q3)
- Interim audit visit: testing of controls and transactions to date, review of significant contracts and related-party transactions.
- Half-year review, where agreed with the auditor or required by lenders or a parent company.
- Agree year-end procedures: inventory count dates, confirmation requests and cut-off checks.
January–March 2027 (Q4)
- Clean up suspense accounts, old balances and unreconciled items.
- Update the fixed asset register and plan physical verification.
- Prepare schedules for estimates: provisions, impairment, doubtful debts, inventory obsolescence.
- On 31 March 2027: physical inventory count and cash count, observed by the auditor where relevant.
April 2027: Year-End Close
- Close the books and pass year-end entries: accruals, provisions, depreciation, deferred tax.
- Reconcile bank, GST, TDS, payroll and intercompany balances.
- Send balance confirmations to banks, customers, vendors and lenders.
- Prepare the trial balance and lead schedules.
May–June 2027: Audit Fieldwork
- The auditor performs substantive testing: vouching, confirmations, cut-off, valuation and disclosure checks.
- Management prepares draft financial statements in the Schedule III format, with notes.
- IFC testing is completed where applicable, and CARO 2020 information is compiled.
- Audit queries are raised and resolved; aim to close them weekly rather than at the end.
July 2027: Review and Finalisation
- Final adjustments are agreed and the financial statements are finalised.
- Management provides a written representation letter.
- The auditor completes partner and quality reviews, and drafts the audit report, CARO report and IFC report.
August 2027: Board Approval and Audit Report
- The Board meeting approves the financial statements and the Board’s report.
- The auditor signs the audit report on or after the Board’s approval and generates the UDIN.
- Notice of the AGM is sent to members, with the audited financial statements, at least 21 clear days before the meeting, unless shorter notice is validly agreed.
September 2027: AGM and Tax Audit
- The AGM adopts the financial statements, by 30 September 2027 at the latest.
- Where a tax audit applies under the Income-tax Act, 2025, it runs alongside and its due date should be confirmed for the year.
October–November 2027: MCA Filings
- File Form AOC-4 within 30 days of the AGM.
- File Form MGT-7 (or MGT-7A for small companies and OPCs) within 60 days of the AGM.
- File Form ADT-1 within 15 days of the AGM if an auditor was appointed.
Who Does What
| Party | Responsibilities |
|---|---|
| Management and finance team | Books of account, reconciliations, schedules, draft financial statements, responses to queries, representation letter |
| Board of directors | Approving financial statements and the Board’s report, Directors’ Responsibility Statement, auditor appointment recommendations |
| Statutory auditor | Planning, testing, audit report, CARO and IFC reporting where applicable |
| Company secretary | Board and AGM notices, minutes, MCA filings |
| Shareholders | Adopting accounts and appointing the auditor at the AGM |
Swipe the table sideways to see all columns.
What Causes Audit Delays
| Cause | How to prevent it |
|---|---|
| Books not closed until May or June | Monthly close through the year; year-end close calendar |
| Unreconciled bank, GST or intercompany balances | Monthly reconciliations with sign-off |
| Missing supporting documents | Central document repository by process |
| Late balance confirmations | Send confirmations in the first week of April |
| Accounting policy disputes found at year-end | Raise judgment areas at the interim stage |
| Audit trail not enabled in software | Check software settings before the year starts |
| Board meeting scheduled too late | Fix Board and AGM dates in the annual calendar |
Swipe the table sideways to see all columns.
Delays matter because the AGM and filing dates do not move. A late audit can push the AGM past 30 September, which in turn delays AOC-4 and MGT-7 and triggers additional fees and possible penalties. Unresolved issues may also lead to a modified audit opinion; see our guide to statutory audit qualifications.
Statutory Audit Timeline Checklist
- Auditor’s term and engagement letter confirmed
- Audit trail enabled in accounting software
- Monthly close and reconciliations running
- IFC documentation and walkthroughs started (where applicable)
- Interim audit completed by December
- Year-end count and confirmation plan agreed
- Books closed and trial balance ready in April
- Draft financial statements ready by June
- Board meeting date fixed for August
- AGM held by 30 September
- AOC-4 within 30 days and MGT-7 within 60 days of the AGM
For the documents to prepare at each stage, see our statutory audit checklist for FY 2026-27.
Frequently Asked Questions
When should a statutory audit start?
Planning should start before or early in the financial year, with interim work mid-year. Final fieldwork usually starts once the books are closed in April or May.
What is the last date to complete a statutory audit for FY 2026-27?
There is no separate audit deadline, but the audited financial statements must be approved by the Board and laid before the AGM, which must generally be held by 30 September 2027.
When is Form AOC-4 due?
Within 30 days of the AGM. If the AGM is held on 30 September 2027, AOC-4 is due by about 30 October 2027.
When is Form MGT-7 due?
Within 60 days of the AGM. Small companies and OPCs file the simpler MGT-7A.
Can the auditor sign before the Board approves the accounts?
No. The Board approves the financial statements first, and the auditor signs the report on or after that date.
Is an interim audit compulsory?
No, but it spreads the workload, surfaces issues early and makes the year-end audit faster.
What happens if the AGM is delayed?
The company may need an extension from the Registrar where permitted, and delays in AOC-4 and MGT-7 attract additional fees and possible penalties.
Is the tax audit part of the statutory audit?
No. A tax audit under the Income-tax Act applies only above prescribed thresholds and has its own due date and report format.
Plan the Year, Not Just the Season
A statutory audit that runs to plan is built across twelve months: early planning, steady monthly reconciliations, an interim visit and a disciplined year-end close. Fix the Board, AGM and filing dates in advance and work backwards from them.
This article provides general information and is not professional advice. Confirm dates, thresholds and exemptions applicable to your company with your auditor and company secretary.
Plan Your FY 2026-27 Audit
AAPT & Associates provides statutory audit services and company secretarial support for Board, AGM and MCA filings.
Sources: Ministry of Corporate Affairs (Companies Act, 2013 and Rules) · ICAI (Standards on Auditing, CARO 2020)
