Difference between statutory audit and private audit?

Statutory audit is a type of audit that is required by law or statute, while private audit is conducted voluntarily by an organization for its own internal purposes.

Statutory audit is typically conducted by an independent external auditor to ensure that a company's financial statements are accurate and comply with relevant laws and regulations. Private audit, on the other hand, is conducted by internal auditors or external auditors hired by the company for specific purposes such as evaluating internal controls, assessing operational efficiency, or identifying areas for improvement.

Statutory audit reports are usually submitted to regulatory authorities, shareholders, and other stakeholders, while private audit reports are used internally by the company's management and board of directors.

In summary, the main difference between statutory audit and private audit lies in their purpose and scope, with statutory audit being mandatory and focused on compliance with laws and regulations, while private audit is voluntary and focused on internal control and operational efficiency.