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CMA Intermediate · Corporate Accounting and Auditing · Audit Report and Reporting under CARO

CARO 2020 was made by the Central Government in exercise of powers under a sub-section of section 143 of the Companies Act, 2013. Which one, and what did it do to the earlier Order?

CARO 2020 was made under sub-section (11) of section 143 of the Companies Act, 2013, and it superseded the Companies (Auditor's Report) Order, 2016, except as respects things done or omitted to be done before the supersession.

  1. ASub-section (3); it amended the 2016 Order
  2. BSub-section (11); it superseded the 2016 OrderCorrect
  3. CSub-section (11); it merely extended the 2016 Order
  4. DSub-section (12); it superseded the 2016 Order

Explanation

The preamble states the Order is made under sub-section (11) of section 143 and in supersession of the 2016 Order, except for things done or omitted before supersession. Hence amendment or extension is wrong, and sub-section (12) is not cited.

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