What Is Statutory Investigation In Auditing?

The statutory investigation is made for the sake of prospectus. The government can issue investigation orders in case of misstatement in the prospectus. The authority can appoint investigator to examine the matters of the company relates to prospectus. The statutory enquiry may be made by the Federal Government relating to the dealing, business or transaction in securities by any broker, member, director or officer of stock exchange. The enquiry is to be made by any person appointed in this behalf.

Inspectors may make the statutory or legal investigation. The Corporate Law Authority can appoint investigators to look into the matter of any company. The company management is responsible to provide assistance for the purpose of investigation. The statutory investigation may be made on behalf of liquidator. When the company is being liquidated there is need to protect the rights of creditors and owners. The facts and figures may be disclosed by investigation. There is a legal right of the liquidator to ask for investigation. The trusty may ask the independent person to examine the affairs of the trust. The trust Act is applicable for checking the books and records of the business.