CARO: 2020 Notified by MCA

CARO: 2020 Notified by MCA

MCA has notified new CARO 2020 wherein all the current clauses are there. Some new provisions are add on to same and some are altered. There are many other reporting requirements on the auditor now.

New CARO Notified by MCA

MCA has given a request named Companies (Auditor’s Report) Order, 2020. The CARO 2020 will be applicable to all the companies including foreign companies and it will be enforced when it will be published in the Official Gazette of India.

The report must include that the company is keeping up proper records showing full particulars, like: 

  • The significant detail of the position of property, plant, and equipment.
  • Physical verification of the property, plant, and equipment.
  • Disclose the details of the title deeds of the immovable property.
  • Revaluation of the property, plant, and equipment and if there is over 10% of the change in the property, plant, and equipment.
  • Details of procedures against the company on the holding of Benami property.
  • Physical verifications of stock or some discrepancies of 10% or more.
  • Details of the investments made by the company, security or assurance given by the company.
  • Details of the payment relating to the statutory dues such as GST, provident Funds, Custom Duty, etc.
  • Details of any default done by the company in making the reimbursement of the advance.
  • Details of the funds raised by a company by the way of the public offer.
  • Details of fraud done by the company, etc.

The Auditor’s Report Order 2020 of any company is supposed to state the reasons for unfavourable or qualified answers.

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