The Ministry of Corporate Affairs has issued the Companies (Auditor’s Report) Order, 2016 (CARO 2016) which is applicable for audits of financial statements for periods beginning on or after April 1, 2015. The CARO 2016 contains several new reporting requirements which were not there in the earlier Orders i.e, CARO 2003 and CARO 2015. An urgent need was felt by ICAI for providing appropriate guidance on CARO 2016 to the members so that the requirements and expectations of the Order can be fulfilled in letter and spirit by the auditors.
I am happy that the Auditing and Assurance Standards Board has brought out this Guidance Note on the Companies (Auditor’s Report) Order, 2016 for the benefit of the members. The Guidance Note was initially developed by three expert groups constituted by the Board for this purpose and thereafter finalised with the contribution of all the members of the Board and the Council. The Guidance Note has been written in an easy to understand language and contains detailed guidance on the various Clauses of CARO 2016 and the various issues and intricacies involved therein. I am also happy that the Guidance Note is comprehensive and selfcontained reference document for the members.
I wish to compliment CA. Shyam Lal Agarwal, Chairman, Auditing and Assurance Standard Board, CA. Sanjay Vasudeva, Vice-Chairman and all the members of the Auditing and Assurance Standards Board for bringing out this highly useful Guidance Note by putting their hard and day night efforts to provide in time for the benefit of the members. I am sure that the members and other interested readers would find the Guidance Note immensely useful.
April 21, 2016 CA. M Devaraja Reddy
New Delhi President, ICAI
To Download the Report, please click on the below link: