Amendments in CARO, 2020

CARO 2020 is a new format for issue of audit reports in case of statutory audits of companies under Companies Act, 2013. CARO 2020 includes additional reporting requirements after consultations with the National Financial Reporting Authority (NFRA). NFRA is an independent regulatory body to regulate the audit and accounting profession in India.

The main motive of CARO 2020 is to enhance the overall quality of reporting by the company auditors.

Company Auditor’s Report Order (CARO) 2020 is applicable for reporting for the Financial Years starting from April 1st, 2020.

List of Amendments
There are no changes in the applicability of CARO 2020. CARO 2020 now has overall 21 clauses against 16 clauses in CARO 2016. 7 new clauses have been entered, 1 clause has been merged and 1 deleted.

Mentioned below are the amendments / changes that have been made in CARO 2020:

List of Clauses	Alterations in CARO, 2020
I. Non –current Assets	Amended Laws- Words “Fixed Assets” not replaced with Property, Plant, Equipment and Intangible Assets (PPEIA).If Title deeds of the immovable properties not in the name of Company, then report all such instances. Any Benami Proceedings initiated to be reported.Revaluation of property, plant or equipment or intangible property to be reported.

Disclaimer The contents of this article are for information purposes only and do not constitute advice or a legal opinion and are the author's personal views. It is based upon relevant law and/or facts available at that time and prepared with due accuracy & reliability. Readers are requested to check and refer to applicable provisions of the statute, latest judicial pronouncements, circulars, clarifications etc., before acting based on the above write up. The possibility of other views on the subject matter cannot be ruled out. By using the said information, you agree that Author / PRANV Advisors is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors, or any omissions in this piece of information for any action taken thereof. This is not an advertisement or solicitation of work by a professional.