Guidance Note on The Companies Auditors Report Order 2020 (CARO – 2020)
The Ministry of Corporate Affairs (MCA) has issued the Companies (Auditor’s Report) Order, 2020 (CARO 2020) on 25th February 2020, which was initially applicable for statutory audits of financial statements for periods beginning on or after April 1, 2019. Subsequently, vide notification dated 24th March 2020, applicability of CARO 2020 was deferred by one year. Accordingly, CARO 2020 would be applicable for statutory audits of financial statements for periods beginning on or after April 1, 2020. CARO 2020 contains several changes including many additional reporting requirements vis-à-vis CARO 2016 to further enhance overall quality of reporting by the auditors. These changes necessitated the revision of the Guidance Note on CARO 2016 earlier issued by ICAI.
The Auditing and Assurance Standards Board (AASB) of ICAI has brought out this Guidance Note on the Companies (Auditor’s Report) Order, 2020 for providing appropriate guidance to the members so that the requirements of the Order can be fulfilled in letter and spirit by them. The Guidance Note is developed to provide detailed guidance on various clauses of CARO 2020 and various issues involved therein in an easy to understand language. This Guidance Note is quite comprehensive and self-contained reference document to assist the members in discharging their duties efficiently.
The Guidance Note has been written in easy to understand language and contains detailed guidance on all clauses of CARO 2020. The Guidance Note will supersede the Guidance Note on CARO 2016 for audits of financial statements for periods beginning on or after April 1, 2020.
Click Here to download the Guidance Note on The Companies Auditors Report Order 2020 – CARO 2020
