Professional Guide to CARO 2020

1 Introduction to CARO – 2020…………………………… 1.1–1.18
2 Applicability of CARO – 2020…………………………… 2.1–2.32
CLAUSE BY CLAUSE ANALYIS
3.1 Clause 1 – Reporting on PPE & Intangible Assets 3(i).1–28
3.2 Clause 2 – Reporting on Inventories 3(ii).1–22
3.3 Clause 3 – Reporting on Loans / Advances 3(iii).1–20
3.4 Clause 4 – Reporting on Compliance of Sec.185/ 186 3(iv).1–4
3.5 Clause 5 – Reporting on Public Deposits 3(v).1–34
3.6 Clause 6 – Reporting on Cost Records 3(vi).1–10
3.7 Clause 7 – Reporting on Statutory Dues 3(vii).1–18
3.8 Clause 8 – Reporting Undisclosed Income Offered 3(viii).1–16
3.9 Clause 9 – Reporting Default in Payments 3(ix).1–22
3.10 Clause 10 – Reporting on Monies Raised and its End Use 3(x).1–34
3.11 Clause 11– Reporting on Frauds 3(xi).1–24
3.12 Clause 12 – Reporting on Nidhi Companies 3(xii).1–30
3.13 Clause 13 – Reporting on Related Party Transactions 3(xiii).1–16
3.14 Clause 14 – Reporting on Internal Audit 3(xiv).1–8
3.15 Clause 15– Reporting on Non Cash Transactions 3(xv).1–8
3.16 Clause 16 – Reporting on RBI Registration & NBFC’s 3(xvi).1–12
3.17 Clause 17– Reporting on Cash Losses 3(xvii).1–4
3.18 Clause 18 – Reporting on Resignation of Auditors 3(xviii).1–26
3.19 Clause 19 – Reporting on ability to meet Liabilities 3(xix).1–10
3.20 Clause 20 – Reporting on CSR 3(xx).1–16
3.21 Clause 21– Reporting on CFS 3(xxi).1–4
4 Para 4 of CARO – 2020………………………………… 4.1–4.12
APPENDIX
Appendix 1 – Comparison between CARO 2016 vs 2020… A.1–A.20
Appendix 2 – Standards On Auditing
(SA 240, 250, 315, 550, 570, 610, 700, 701, 705, 706) SA.1–222
Appendix 3 – ICAI Guidance on Audit Matters
Guidance on Reporting under Sec. 143(3) (f) & (h)…… GN.1–15
Appendix 4 – Reporting Guidance under ICAI GN R.1-R.30