Section 143(11) of the Companies Act, 2013 (2013 Act) requires that the auditor’s report of specified class of companies should include a statement on the prescribed matters. These reporting requirements have been prescribed under the Companies (Auditor's Report) Order, 2015 (CARO 2015) issued by the Ministry of Corporate Affairs (MCA) on 10 April 2015.
The MCA had set-up a committee on 16 September 2015 to examine and recommend matters that should form part of the statement. This statement would be attached with the auditor’s report under Section 143(11) for the financial year 2015-16 and thereafter. The committee made recommendations on the matters to be included in the statement and on the basis of its recommendations, MCA issued draft Companies (Auditor’s Report) Order, 2016 (CARO 2016) on 9 February 2016.
This issue of First Notes provides an overview of the draft CARO 2016.
To access the text of the draft CARO 2016, please click here.
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