i ve an a problem .....there was a audit of a pvt ltd co. ....to whom caro was apllicable ....but i mentioned that its not apllicable so i want to ask w8s d consequences ....of that ....what steps need to be taken ????
thanks in advance
sahil (Executive) (102 Points)
30 December 2010i ve an a problem .....there was a audit of a pvt ltd co. ....to whom caro was apllicable ....but i mentioned that its not apllicable so i want to ask w8s d consequences ....of that ....what steps need to be taken ????
thanks in advance
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 30 December 2010
DEFINITELY AN AUDITOR IS RESPONSIBLE FOR ACTS OF OMISSION OR COMMISSION AND PROFESSIONAL LAPSES OR EVEN POOR JUDGEMENTS OR BIASED JUDGEMENTS .
UNDER SEC 233 FOR PENALTY (FOR NON COMPLIANCE UNDER SEC 227 TO 229,)THE AUDITOR IS LIABLE FOR ANY DOCUMENT SIGNED OR AUTHENTICATED WHICH IS NOT IN CONFORMITY WITH REQUIREMENTS OF SEC 227 TO SEC 229 .
ANY DCUMENT INCLUDES OBVIOUSLY CARO 2003 ALSO.
Reffer below link
/experts/non-compliance-of-provisio-of-caro-2003-25241.asp
Regards
M.S.Kabra
Ajay Mishra
(Company Secretary)
(74337 Points)
Replied 31 December 2010
Hi
CARO, 2003 and CARO (Amendment), 2004 - A Comparative Analysis
[Submitted by Mr. V.M.V. Subba Rao, B.Com., F.C.A., D.I.S.A(ICA)]
Sl. No. |
Clause |
CARO, 2003 |
CARO (Amend), 2004 |
Amendments / Remarks |
01 |
Clause (iv)(2) of Para 1 |
a private limited company with a paid up capital and reserves not more than fifty lakh rupees and has not accepted any public deposit and does not have loan outstanding ten lakh rupees or more from any bank or financial institution and does not have a turnover exceeding five crore rupees. |
'a private limited company with a paid up capital and reserves not more than rupees fifty lakh and which does not have loan outstanding exceeding rupees twenty five lakh from any bank or financial institution and does not have a turnover exceeding rupees five crore at any point of time during the financial year. |
1. The Pvt. Ltd. Companies cannot legally raise public deposits and hence the clause has been omitted. |
02 |
Clauses( c) to (i) of Para 2 |
Definitions of: |
OMITTED |
Certain definitions repeated from MAOCARO, 1988 have been omitted now. |
03 |
Clause (iii) of Para 4 |
a) has the company either granted or taken any loans, secured or unsecured to/from companies, firms or other parties covered in the register maintained under section 301 of the Act. If so, give the number of parties and amount involved in the transactions. |
a) has the company granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act. If so, give the number of parties and amount involved in the transactions; and |
Previously merged clauses have been de-merged again in line with MAOCARO, 1988 with some changes have already made in CARO,2003. |
04 |
Clause (iv) of Para 4 |
is there an adequate internal control procedure commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. Whether there is a continuing failure to correct major weaknesses in internal control; |
is there an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. Whether there is continuing failure to correct major weakness in internal control system; |
1. Now the more emphasis has been given to internal control system rather than mere internal control procedure. 2. Now the para covers purchase and sale of services also.
|
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