This book provides a para-wise commentary on the Companies (Auditors Report) Order (CARO). It is a complete guide on the applicability and the matters that need to be reported by an Auditor on CARO. This book will be helpful for Auditors.

The Present Publication is the 10th Edition and has been amended up to August 2023. This book is authored by CA Srinivasan Anand G and divided into three divisions:

[Division One] Features of CARO 2020 & its Applicability
[Division Two] CARO Reporting as Applicable to Standalone Financial Statements
[Division Three] CARO Reporting as Applicable to Consolidated Financial Statements
The noteworthy features of this book are as follows:

[Corporate Practices] from published annual reports of FYs 2021-22 & 2022-23 are included in the book
[All-about CARO 2020] which includes the following topics:
Features of CARO 2020
Audit Requirements (Other Audits vs Reporting Requirements u/s 143 of the Companies Act 2013)
Clause-wise Analysis & Commentary on Clauses (i) to (xx) of Para 3 & 4 along with Clause (xxi) of Para 3 of CARO 2020
[Para-wise Commentary] dealing with clauses (i) to (xx)
Interpretation Requirements of the Clause in light of the following:
Applicable Legal Provisions
Relevant Standards on Auditing
Revised 2022 Guidance Note of ICAI on CARO 2020
Applicable Requirements of Schedule III of the Companies Act 2013
Requirements of Section 143(1) to (3) applicable to the Clause'
NFRA's Interpretation of the Reporting Requirements of the Clauses and lapses on the part of auditors pointed out by NFRA in Audit Quality Review Reports (AQRR)
Forward Linkages to the following:
Tax Audit Report in Form No. 3CD
Requirements under Section 143(1)/143(3) of the Income-tax Act
Audit Checklists covering the following
Checklist in respect of each CARO Clause
DPT 3 Return Certification
Nidhi Rules Compliances
SA 570 (Revised)
Audit Documentation
Sample Auditors' Remarks under the relevant Clause
Corporate Practices (extracts from the annual reports)
[FAQs & Case Studies] on CARO 2020
[Clause-wise Ready Reckoner] on CARO 2020
The detailed contents of this book are as follows:

Applicability of Requirements of CARO 2020
Introduction
Applicability of CARO 2020
Reporting under CARO 2020 (As Applicable to Audit of Standalone Financial Statements) [Clauses 3(i) to 3(xx) of CARO 2020]
Property, Plant and Equipment
Intangible Assets
Title Deeds of all Immovable Properties Disclosed in Accounts
Proceedings Pending against the Company for Holding Benami Property
Inventory
Quarterly Statements Submitted to Banks/FIs by Companies Enjoying Sanctioned Working Capital Limits
Loans or Advances in the Nature of Loans or Guarantees or Security Provided to, or Investments made in Other Entities
Reporting on Compliance with Sections 185 and 186 as Regards Loans, Investments, Guarantees and Securities
Acceptance of Public Deposits and Deemed Deposits
Maintenance of Cost Records
Payment/Non-Payment of Statutory Dues
Transactions not Recorded in the Books and Surrendered or Disclosed as Income in Tax Assessment
Company Defaults in Repayment of Loans/Other Borrowings/in Payment of Interest to any Lender
End Use of Term Loans
'Asset-Liability Maturity Mismatch' – Use of Short-Term Funds for Long-Term Purposes
Funds Taken from Other Entities by Company to Meet Obligations of Subsidiaries, Associates or JVs
Whether Company has Raised a Loan on Pledge of Securities in Subsidiaries, Associates or JVs
End Use of Money Raised by Way of IPO/FPO
Private Placement/Preferential Allotment of Shares/FCDs/PCDs/OCDs
Frauds Noticed/Reported
Reporting of Compliances by Nidhi Companies
Related Party Transactions
Internal Audit
Non-Cash Transactions Involving Directors or Connected Persons
Registration of NBFCs, HFCs and CICs
Whether Company has Incurred Cash Loss
Resignation of Statutory Auditors
Material Going Concern Uncertainty
Transfer of Unspent CSR Funds
Reasons to be Stated by Auditor for Qualified or Adverse Remarks
in CARO Report
CARO Report on Consolidated Financial Statements under CARO, 2020
Qualified/Adverse Remarks in CARO Reports of Companies Included in Consolidated Financial Statements