Where, in the auditor’s report, the answer to any of the questions referred to in paragraph 4 is unfavourable or qualified, the auditor’s report shall also state the reasons for such unfavourable or qualified answer, as the case may be. Where the auditor is unable to express any opinion in answer to a particular question, […]
Reasons to be Stated for Unfavourable or Qualified Answers Read Post »
The Companies (Auditor’s Report) Order, 2003 (CARO, 2003) was issued in June 2003 and came into force on the 1st day of July 2003. The said Order, from the date it came into force, superceded the MAOCARO, 1988. Further, the Order requires that every report made by the auditor under section 227 of the Act
Effective Date of the Order Read Post »
Paragraph 2 of the Order provides that it shall not apply to: a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); an insurance company as defined in clause (21) of section 2 of the Companies Act, 1956 (1 of 1956); a company licensed to
Companies not Covered by the Order Read Post »
Companies Covered by the Order: The Order applies to all companies except certain categories of companies specifically exempted from the application of the Order. The Order also applies to foreign companies as defined in section 591 of the Act. According to sub- section (1) of the aforesaid section, companies falling under the following two classes
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The requirements of the Order are supplemental to the existing provisions of section 227 of the Act regarding the auditor’s report. However, there are certain points of distinction between the Order and the requirements of section 227, which are as follows: the provisions of sub-sections (1A), (2), (3) and (4) of section 227 are applicable
General Provisions Regarding Auditor’s Report Read Post »
The Central Government, in exercise of the powers conferred, under sub-section (4A) of section 227 of the Companies Act, 1956 (hereinafter referred to as “the Act”), issued the Companies (Auditor’s Report) Order, 2003, (CARO, 2003) vide Notification No. G.S.R. 480(E) dated June 12, 2003. CARO, 2003 contained certain matters on which the auditors of companies
Companies (Auditor’s Report) Order, 2003 Read Post »
The following is an illustration of a complete auditor’s report incorporating the basic elements set forth and illustrated above. This report illustrates the expression of an unqualified opinion. “AUDITOR’S REPORT (Appropriate Addressee) We have audited the attached Balance Sheet of ..…… (Name of the entity) as at 31st March 2XXX and also the Profit and
Format of Audit Report Read Post »
