TL;DR for CAs
- CARO 2020 expands reporting on loans, related parties, and fraud.
- Applicability excludes certain private companies meeting conditions.
- Working papers must evidence each clause conclusion.
What it is
Companies (Auditor's Report) Order, 2020 specifies matters to be included in the auditor's report for applicable companies.
Who it applies to
Statutory auditors of companies not falling under exemption criteria.
Key provisions
- Property plant & equipment and title deeds
- Loans and preferential allotment
- Fraud, whistle-blower, and going concern related reporting
Practical tips for CAs
Map each clause to audit programme steps. Obtain management representations for contentious items.
Common mistakes
Boilerplate NIL without testing; missing related-party loan trails.
For general guidance only. Verify with the latest Finance Act, GST notifications, and ICAI guidance notes before advising clients.