CARO or Companies (Auditor’s Report) Order, 2020, broadens the scope and also defines the way the report is issued or details as part of auditor’s report, including proceedings initiated or pending, if any, against the company under the Benami Transactions (Prohibition) Act
Auditor’s report must include the details on
- Any Sanction to the company in respect of working capital limits higher than Rs5 crore,
- Dues on account of goods and sales tax (GST) & losses incurred in Cash
- Intentionally unreported transactions as per finalised Income tax assessments
- Wilful Defaulter Declaration by any lender pertaining to this or any other company.
MCA Order mandates the company to disclose and report if the auditor has considered whistle-blower complaints received during the year.
In the event of the resignation of the statutory auditor of the company and reappointment of new Auditor, MCA order mandates that the present auditor should take into consideration the issues, objections or concerns raised by the outgoing erstwhile auditors.
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