Roles inside a company
Statutory auditor
The external auditor who gives an opinion on whether the financial statements are true and fair.
Background
Statutory auditors are appointed by shareholders under the Companies Act. Listed companies must rotate individual auditors after one five-year term and audit firms after two.
Scope and powers
The auditor issues the audit opinion, reports key audit matters and, under CARO 2020, comments on specific matters such as loans and fraud. Auditors of listed companies are overseen by NFRA.
Investor relevance
Qualified opinions, emphasis of matter paragraphs and sudden auditor resignations are among the strongest governance warning signs.
Related guides
Key glossary terms
Last reviewed: October 2026