CARO - Page 3

Comparative summary of CARO 2016 vs CARO 2020

Companies (Auditor’s Report) Order, 2020 The Companies Act, 2013 requires auditors of specified class of companies to include a statement in their reports on specific matters as prescribed in the Companies (Auditor’s Report) Order (CARO). In 2020, the Ministry of Corporate Affairs (MCA) issued a revised CARO (CARO 2020) which is appli...

Posted Under: Company Law |

How to determine Cost Audit & Cost Records Maintenance applicability for reporting in Director’s Report & CARO

All of us have started experiencing the heat towards the compliance mechanisms being put up by the statutory/regulatory authorities. As the Cost Records and GST records both use the HSN codes for reporting purposes, leniency in the maintenance of cost records or missing out on getting the cost audit conducted can cost a lot to the organis...

Posted Under: Company Law |

Implementation Guide on Reporting under Rule 11(e) & 11(f) of Companies (Audit and Auditors) Rules, 2014

Implementation Guide on Reporting under Rule 11(e) and Rule 11(f) of the Companies (Audit and Auditors) Rules, 2014 The Ministry of Corporate Affairs vide notification dated March 24, 2021 issued the Companies (Audit and Auditors) Amendment Rules, 2021. Pursuant to this notification, several changes have been made in Rule 11 of the Compan...

Posted Under: Company Law |

Summary of clauses in CARO 2020 and consequential amendments to Schedule III to Companies Act, 2013

Summary of reporting requirements under CARO 2020 and Summary of disclosures requirements under Schedule III to the Companies Act, 2013 - Article summarises interplay of some of the clauses in CARO 2020 and consequential amendments to Schedule III to the Companies Act, 2013....

Posted Under: Company Law |

Comparison between CARO 2020 and 2016 for companies in India

1. Reporting for Property, Plant and Equipment (PPE) and Intangible Assets CARO-2020 – Clause 3(i) for maintaining of records for PPE and Intangible assets (a) (A) Whether the company is maintaining proper records showing full particulars, including quantitative details and situation of PPE ? (B) Whether the company is maintaining prope...

Posted Under: Company Law |

Changes in Companies Act, 2013 you must know – Part I

1. Amendment for use of Accounting Software having Audit Trail (i) Now all companies are “mandatory” required to use accounting software having audit trail of each transaction besides the original transactions were rectified or deleted. This requirement is applicable from April 01, 2021. (ii) Applicability of this provision is deferre...

CARO, 2020 – Companies Auditor’s Report Order, 2020

Companies Auditor’s Report Order 2020 brings more enhanced reporting disclosures which will provide more accurate insights to the business with completeness and accuracy providing the stakeholders knowledge about operational and financial position of the company. Such enhanced disclosures will provide foreshadow about corporate failures...

Posted Under: Company Law |

Major Changes in CARO 2020

AUDIT UPDATE In this document, we have discussed the major changes and new insertions in CARO (Companies Auditor’s Report Order), 2020 as compared to CARO 2016. 1. Applicability: (Modified) CARO 2020 shall not apply to the auditor’s report on consolidated financial statements EXCEPT, if there are qualifications or adverse remarks ...

Posted Under: Company Law |

CARO- 2020 is applicable for the financial year 2021-22 onwards

As per Ministry of Corporate Affairs (MCA) Order dated 25th February, 2020, CARO 2020 was applicable for the financial year 2019-20 onwards. It was subsequently amended vide its order dated 24th March, 2020 for the deferment of CARO 2020 from financial year 2019-20 to 2020-21. MCA has further deferred the applicability of CARO 2020 from [...

Posted Under: Company Law |

Applicability of CARO 2020 | IFC reporting | Internal Audit | Cash Flow | Ind AS & others

In this article, we will have insight over the applicable provisions of certain most common sections (yet vital) of the Companies Act 2013, which we come through day in and day out during Audit and Assurance assignments. CARO 2020 CARO 2020 is applicable to all companies including foreign companies w.e.f 1st April 2021. Following are [&he...

Posted Under: Company Law |

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