MANAGEMENT

BUISENESS MANAGEMENT

RISK MANAGEMENT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

How many clauses exist in the Companies (Auditor’s Report) Order, 2016 ("the order")?

A	12
B	15
C	16
D	21

Explanation:

Detailed explanation-1: -The CARO 2016 contains 16 clauses, whereas CARO 2015 has only 12 clauses.

Detailed explanation-2: -The total number of clauses in the new CARO is 16. CARO 2016 has enhanced the auditor’s reporting requirements in certain areas, such as related party transaction and managerial remuneration.

Detailed explanation-3: -This order stated that every report of the auditor under Section 143 of Companies Act, 2013 must contain the matters stated in 21 clauses as specified under paragraphs 3 and accord reasons for unfavorable or qualified answer as stated in paragraph 4 of CARO 2020 (mentioned below in clause by clause analysis).

Detailed explanation-4: -CARO 2016 requires that the auditor’s report of specified companies should include a statement on certain prescribed matters as provided under the Companies Act, 2013. These requirements with respect to the Auditor’s Report have been provided under the Companies Auditor Report Order (CARO) Rules.

There is 1 question to complete.