Statutory audits are mandatory for all companies registered in India under the Companies Act, 1956 and Companies Act, 2013, as well as Limited Liability Partnerships (LLPs) with a turnover exceeding Rs. 40 Lakhs or a contribution of Rs. 25 Lakhs. As per Section 139(1) of the Companies Act, 2013 read with Rule 3 of Companies (Audit & Auditors) Rules, 2014, every company must appoint an individual or firm as an auditor.