Synoptic overview on the Companies Auditor’s Report Order
The whole backdrop of the concept of the Companies Audit Report Order is derived from the various Companies Acts in force at various points of time in the country. In its latest developments, the Central Government, in exercise of the powers conferred, under section 143(11) of the new Companies Act, 2013, issued the Companies (Auditors Report) Order, 2016, (CARO, 2016) vide Order No. S.O. 1228(E) dated 29^th March, 2016. The Companies Audit Report Order typically contains certain matters on which the auditors of the companies are required to make a statement in their audit report. The new Order (CARO, 2016) is in supersession of the earlier Order issued in 2015, viz., the Companies (Auditors Report) Order, 2015 (CARO 2015). The erstwhile versions of this were the MAOCARO, 1988, the CARO, 2003 and the CARO, 2015.
An attempt is made herein, to compile the various clauses of the Order and to outline the evolution of the Order over time. The purpose of this is to enable one to get an insight onto the reporting requirements of the Order under the various earlier Acts applicable to Companies in India. It should, however, be noted that the information contained in this document are not intended to be exhaustive. For any statutory clarifications, the Guidance Notes issued by ICAI and the official Notifications issued by the respective Authorities on the relevant matters are required to be made, along with a reference to the Act itself.
Peruse the document and enjoy the palpable evolutionary progression of the different clauses of the Companies Auditor’s Report Order over time.