Types of Auditors in India: Roles, Eligibility and Skills

Last reviewed: 14 October 2026

Auditors examine financial records, internal controls and compliance to assess whether an organisation meets applicable requirements. In India, the type of auditor and the required qualification depend on the audit’s purpose and relevant laws.

• Types of auditors: Internal, external, statutory, government, forensic, tax, compliance, cost, secretarial and information systems auditors.
• Statutory auditor eligibility: A company’s statutory auditor must meet the requirements under section 141 of the Companies Act, 2013.
• Key responsibilities: Reviewing records, assessing risks, identifying discrepancies and preparing audit reports.
• Professional qualifications: CA, cost accountant and company secretary qualifications are required for specific audit roles. Other roles may require relevant education, experience or specialist certifications.
• Audit opinions: The four main types are unmodified, qualified, adverse and disclaimer of opinion.

Understanding the different types of auditors helps organisations identify the right professional for their audit requirements. Aspiring auditors can choose a suitable qualification and develop the technical, analytical and ethical skills needed for their preferred career path.

An auditor is a professional who examines financial statements, records, processes or controls to assess whether they meet applicable accounting standards, laws and other requirements. Auditors may work within an organisation, independently for clients, in audit firms or for public authorities.

Their responsibilities depend on the type of audit they conduct. Common activities include:

• Examining financial statements and supporting documents.
• Checking whether transactions follow applicable laws, accounting standards and internal policies.
• Assessing internal controls and identifying financial or operational risks.
• Investigating suspected fraud or irregularities within the scope of the engagement.
• Preparing audit reports that communicate findings and relevant qualifications.

A statutory audit provides reasonable assurance about the financial statements; it does not guarantee that every error or instance of fraud will be detected.

An accountant records business transactions and prepares financial statements. An auditor examines the records and statements to assess whether they meet the relevant reporting requirements. The two roles have different responsibilities.

Under section 143(2) of the Companies Act, 2013, a company’s statutory auditor reports to its members on the matters covered by the statutory audit.

To identify a statutory auditor of a company, check the person’s professional qualification, the company’s auditor appointment records and, where relevant, the Unique Document Identification Number (UDIN) on a certified document.

A UDIN check helps verify a document’s identification details. It does not, by itself, establish that a person has been appointed as the statutory auditor of a particular company.

Different types of auditors examine different aspects of an organisation’s financial records, controls and compliance. The appropriate auditor depends on the purpose of the audit and the applicable legal requirements.

1. Internal auditor

An internal auditor evaluates an organisation’s internal controls, risk management and processes. The work may cover operational efficiency, compliance with internal policies and the reliability of financial or operational information. Under section 138 of the Companies Act, 2013, an internal auditor may be a chartered accountant, a cost accountant or another professional decided by the Board.

2. External auditor

An external auditor examines financial statements independently of the people who prepared them. When appointed to conduct a statutory audit of a company, the auditor must meet the eligibility requirements under section 141 of the Companies Act, 2013. The audit report communicates the auditor’s opinion on the financial statements.

3. Statutory auditor

A statutory auditor is appointed to conduct an audit required by law. Under the Companies Act, 2013, a company must appoint an eligible statutory auditor to examine its financial statements and report to its members. A statutory auditor has rights of access to the company’s books of account and vouchers, subject to the applicable law.

4. Government auditor

A government auditor examines public accounts, expenditure or the use of public funds under the applicable audit framework. The Comptroller and Auditor General of India (CAG) audits the accounts of the Union and the States and performs other duties provided by the Constitution and legislation. The appointment process depends on the type of government entity and the applicable law.

5. Forensic auditor

A forensic auditor examines financial information to investigate suspected fraud, embezzlement or other financial irregularities. The work may involve reviewing transaction trails, supporting documents and financial patterns, and preparing findings for management, legal advisers or investigative authorities. Relevant specialist training can support this work, but the appropriate qualification depends on the role and engagement.

6. Tax auditor

A tax auditor examines records and information relevant to compliance with applicable tax requirements. In India, a tax audit under the Income-tax Act, 1961 must be conducted by a person eligible under the Act and its rules. A tax audit is different from an assessment or scrutiny carried out by the Income Tax Department.

7. Compliance auditor

A compliance auditor checks whether an organisation follows relevant laws, regulations, policies and contractual obligations. The work may cover areas such as banking, insurance, healthcare, data protection or other regulated activities. The required expertise depends on the industry and the regulations being examined.

8. Cost auditor

A cost auditor examines cost records where a cost audit is required under section 148 of the Companies Act, 2013. The audit is conducted by a cost accountant in practice appointed in accordance with the applicable provisions. It focuses on cost records and related requirements rather than replacing the company’s statutory financial audit.

9. Secretarial auditor

A secretarial auditor examines a company’s compliance with specified corporate and secretarial requirements. Under section 204 of the Companies Act, 2013, a secretarial audit is required for every listed company and prescribed classes of companies. It is conducted by a company secretary in practice, and the report is attached to the Board’s report as required by law.

10. Information systems auditor

An information systems auditor examines technology systems, access controls, data security and IT-related risks. The work may include assessing how systems protect information, maintain data integrity and support business operations. Specialist credentials, such as the Certified Information Systems Auditor (CISA) qualification offered by ISACA, may be relevant to this career path.

A statutory auditor is appointed to conduct an audit required by the Companies Act, 2013. The Act sets out the eligibility criteria, appointment process, reporting duties and access rights for the audit.

Appointment requirements, term and rotation rules can vary by company category. Check the applicable provisions before making an appointment or 

Cost audits and secretarial audits serve different purposes under the Companies Act, 2013. The table explains who conducts them and when the requirements apply.

The statutory auditor of a company cannot also conduct its cost audit where section 148 prohibits the same person from holding both roles.

Internal and external auditors examine different aspects of an organisation’s activities. Their appointment, scope and reporting responsibilities depend on the applicable law and the engagement.

An organisation may use both internal and external auditors. Their work can complement each other, but one does not automatically replace the other.

Rule 13 of the Companies (Accounts) Rules, 2014 specifies the categories of companies that must appoint an internal auditor. Other companies may also choose to appoint one as part of their governance and risk management arrangements.

The tests generally use the preceding financial year, with the rules specifying how the relevant loans, borrowings and deposits are assessed. Confirm the current wording of rule 13 and its applicability to the company before relying on these thresholds.

The qualifications required to become an auditor depend on the type of audit you want to conduct. A general degree or software diploma can build relevant skills, but it does not replace a statutory professional qualification where the law requires one.

• Statutory auditor: A company’s statutory auditor must be a chartered accountant or an eligible firm of chartered accountants under section 141 of the Companies Act, 2013. You can learn more about the chartered accountant qualification.
• Cost auditor: A cost audit required under section 148 must be conducted by a cost accountant in practice, subject to the applicable requirements.
• Secretarial auditor: A secretarial audit under section 204 must be conducted by a company secretary in practice.
• Internal auditor: Depending on the applicable provision and the Board’s decision, an internal auditor may be a chartered accountant, a cost accountant or another suitable professional.
• Information systems auditor: Qualifications and certifications in information systems, IT controls and cybersecurity may be relevant. ISACA offers the CISA certification.
• Forensic auditor: Specialist learning in forensic accounting and fraud detection can support this career. The Institute of Chartered Accountants of India (ICAI) offers a Certificate Course on Forensic Accounting and Fraud Detection.
• Other audit roles: A degree in accounting, finance, commerce, information technology or a related field can provide a foundation. An MBA in accounting and relevant diploma courses may also help build practical knowledge.

Certifications from bodies such as ISACA and The Institute of Internal Auditors can support specialised careers. However, they do not automatically authorise a person to conduct every type of statutory audit in India.

Auditors need technical knowledge, analytical ability and professional judgement to examine records and communicate findings clearly.

1. Strong analytical skills

Auditors review financial data, identify inconsistencies and assess risks. Logical thinking helps them investigate unusual transactions and decide which areas require further examination.

2. Knowledge of accounting standards

Knowledge of Indian Accounting Standards (Ind AS), applicable financial reporting requirements, tax laws, Goods and Services Tax (GST) and relevant regulations helps auditors evaluate records against the correct criteria.

3. Attention to detail

Auditors must review figures, supporting documents and transaction trails carefully. A small discrepancy may require further investigation to determine whether it is an error, a control weakness or a more significant issue.

4. Communication and report writing

Auditors document their work, explain findings and prepare reports. Clear writing helps management, boards and other intended readers understand the evidence, limitations and conclusions.

5. Technology proficiency

Experience with accounting and enterprise software such as Tally, QuickBooks and SAP can help auditors understand digital records. Knowledge of data analytics, access controls and cybersecurity is also relevant, particularly for information systems audits.

6. Ethical and professional integrity

Auditors must follow applicable independence and professional requirements, protect confidential information and report findings objectively. They should also identify conflicts of interest and avoid work that compromises their independence.

A combination of these skills helps auditors carry out their responsibilities with care and professional judgement.

Auditors provide an independent and objective assessment of an organisation’s financial statements or other records within the scope of their work. Their findings can help identify inconsistencies, assess controls, highlight compliance gaps and provide relevant information to boards, shareholders and other stakeholders.A company’s statutory auditor reports to its members on whether the financial statements give a true and fair view in accordance with the applicable reporting framework. This reasonable assurance can help readers assess the reliability of the statements. However, an audit does not guarantee that a company is free from fraud or error, because some material misstatements may go undetected.

A statutory auditor gives an opinion on the financial statements based on the audit evidence obtained. Under the applicable Standards on Auditing, there are four main outcomes.

A qualified opinion, an adverse opinion and a disclaimer of opinion are known as modified opinions. The wording and consequences of an opinion depend on the findings and the applicable reporting framework.

Section 143(12) of the Companies Act, 2013 sets out a statutory auditor’s duty to report certain suspected fraud involving officers or employees of the company. The reporting route depends on the amount involved and the applicable rules.

The applicable forms, reporting route and time limits must be checked against section 143(12) and rule 13 of the Companies (Audit and Auditors) Rules, 2014. Auditors should follow the current legal requirements for the circumstances of the suspected fraud.

Section 144 of the Companies Act, 2013 restricts a statutory auditor from providing specified non-audit services to the company being audited and its holding or subsidiary companies, directly or indirectly. The restrictions help protect auditor independence.

The restricted services include:

• Accounting and book-keeping services.
• Internal audit.
• Design and implementation of financial information systems.
• Actuarial services.
• Investment advisory services.
• Investment banking services.
• Outsourced financial services.
• Management services.
• Other services prescribed under the applicable rules.

A statutory auditor may provide other services only where permitted and approved in accordance with the applicable requirements. The specific service and circumstances should be checked against the current wording of section 144.

The type of auditor you need depends on the records or risks that must be examined and the legal requirements that apply.

Before appointing an auditor, confirm the required professional qualification, the scope of work, independence requirements, appointment records and applicable reporting obligations.

• Appointing an ineligible statutory auditor: Check the qualification and eligibility requirements under section 141 of the Companies Act, 2013.
• Asking the statutory auditor to keep the company’s books: Section 144 restricts accounting and book-keeping services by the statutory auditor to the audited company and its holding or subsidiary companies.
• Withholding records or explanations: Section 143 provides statutory auditors with rights of access to company books and vouchers and allows them to seek relevant information and explanations.
• Treating an unmodified opinion as a guarantee against fraud: An audit provides reasonable assurance; some misstatements may go undetected.
• Ignoring a modified opinion: Read the basis for a qualified opinion, adverse opinion or disclaimer to understand the issue or evidence limitation.
• Accepting a certificate without checking its UDIN: Where relevant, use the Verify UDIN facility on the ICAI portal.

Auditing supports financial reporting, accountability and compliance. Whether you pursue internal, statutory, forensic, tax, cost, secretarial or information systems auditing, the qualifications you need depend on the role and applicable legal requirements. Professional qualifications such as CA, CIA (Certified Internal Auditor) or CISA (Certified Information Systems Auditor) can support relevant audit careers.

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