Who is the primary recipient of a statutory audit report?

The primary recipient of a statutory audit report is the shareholders. This is because the audit is conducted to provide an independent assessment of the financial statements of a company, which are prepared primarily for the benefit of the shareholders. Shareholders rely on the statutory audit report to gain assurance that the financial statements present a true and fair view of the company's financial position and performance.

In the context of corporate governance, shareholders are entitled to receive information regarding the company’s financial health, and the audit report serves as a critical component in helping them make informed decisions about their investments. While the management team and the board of directors may review the audit report for internal purposes and to ensure compliance and governance, their primary responsibility is to prepare the financial statements, not to receive the report as a primary recipient. External auditors, on the other hand, perform the audit and are therefore not the recipients of the report; they create it for the stakeholders like shareholders.