Representation of funds, transfer of properties, ability to discharge liabilities, and disclosures on loans, guarantees, and investments of a company will now come under auditor scrutiny.
- To curb corporate scams, the Ministry of Corporate Affairs has specified 21 items that an auditor must include in its report, as per the government’s recent notification on Companies Auditors Report Order 2020 or CARO.
- It applies to all companies in India, except banks and insurers or firms below a specified threshold.
Here are the key disclosures that auditors would have to make in their report.
