According to Investopedia, "statutory auditing" is when a company is required by law to ensure that it is being accurate in its accounting. This type of auditing is usually performed by an external organization, notes Crowe Horwarth.
An audit is a review of the company's financial documents and stocks to show that it is being honest in the way it presents itself, notes Investopedia. Government agencies are often required to undergo statutory auditing annually to be accountable for the way they spend money. According to Crowe Horwarth, how deep such auditing goes is dependent on the law; it determines the nature of the auditing.