Caro 2016
This query is : Resolved
03 October 2016
Is it Complusory to report on all the 16 clauses of CARO 2016, ie If a clause is not applicable to a Company, can we just skip it off or, we have to state the caluse and mention there as Not Applicable
04 October 2016
Appropriate comments for each clause is mandatory.
09 October 2016
Thank you Sir for your reply, recently i have gone through the Guidance note issued by ICAI, where it states that the same is optional, abstract of the Guidance note is as follows
Auditor's Report to Contain Matters Specified
in Paragraphs 3 and 4 of the Order
21. Every report made by the auditor under section 143 of the Act on the accounts of every company audited by him, to
which this Order applies, for the financial year commencing on or after 1st April 2015 shall, in addition, contain the
matters specified in paragraphs 3 and 4 of the Order as may be applicable. Accordingly, the reporting under this Order
shall be applicable for the financial year 2015-16 and onwards. In case the auditor has to report on the financial
statements for the financial year prior to 2015-16, then the relevant earlier Order shall be applicable. Here it is pertinent to mention that the Order specify the applicability of the matters by the words “as may be
applicable”, reporting on the matters specified in paragraph 3and 4 of the Order are to be made only on those matters
which are applicable to the Company.
By refereing to the above paragraph i am interpreting the same as optional, Is it correct?
Thank you Sir for your reply, recently i have gone through the Guidance note issued by ICAI, where it states that the same is optional, abstract of the Guidance note is as follows
Auditor's Report to Contain Matters Specified
in Paragraphs 3 and 4 of the Order
21. Every report made by the auditor under section 143 of the Act on the accounts of every company audited by him, to
which this Order applies, for the financial year commencing on or after 1st April 2015 shall, in addition, contain the
matters specified in paragraphs 3 and 4 of the Order as may be applicable. Accordingly, the reporting under this Order
shall be applicable for the financial year 2015-16 and onwards. In case the auditor has to report on the financial
statements for the financial year prior to 2015-16, then the relevant earlier Order shall be applicable. Here it is pertinent to mention that the Order specify the applicability of the matters by the words “as may be
applicable”, reporting on the matters specified in paragraph 3and 4 of the Order are to be made only on those matters
which are applicable to the Company.
By refereing to the above paragraph i am interpreting the same as optional, Is it correct?
09 October 2016
In support of your observation, I give below a portion of my report given to a client.
vii In view of the nature of business carried on by the Company clause No.3 (xii) of the order referred to in para 3 of our report of even date are not applicable to the company.
Further in view of the absence of conditions prerequisite to the reporting requirement, clause No.3 (v), (vi), (vii) (b), (ix), (x), (xi), (xiv), (xv) and (xvi) of the said order are, at present, not applicable to the company
vii In view of the nature of business carried on by the Company clause No.3 (xii) of the order referred to in para 3 of our report of even date are not applicable to the company.
Further in view of the absence of conditions prerequisite to the reporting requirement, clause No.3 (v), (vi), (vii) (b), (ix), (x), (xi), (xiv), (xv) and (xvi) of the said order are, at present, not applicable to the company
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