Skip to content

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

Clause (xxi) of paragraph 3 of CARO 2020, which alone applies to consolidated financial statements, requires the auditor to state:

Clause (xxi) requires the auditor to state whether there are qualifications or adverse remarks by the respective auditors in the CARO reports of companies included in the consolidated statements, and if so, to give company details and paragraph numbers.

  1. Awhether the holding company has defaulted in repaying loans to banks
  2. Bwhether any fraud was noticed in the group during the year
  3. Cwhether there are any qualifications or adverse remarks by the respective auditors in the CARO reports of the companies included in consolidationCorrect
  4. Dwhether the group has maintained proper records of fixed assets

Explanation

Clause (xxi) asks whether the respective auditors made any qualifications or adverse remarks in the CARO reports of the companies included in the consolidated statements. If so, details of the companies and paragraph numbers are to be indicated. The other matters are standalone clauses and do not apply to consolidated reports.

Did you get it right without looking?

One question tells you little. A timed set on Audit Report and Reporting under CARO shows your real accuracy, how long you take and where you lose marks.

Practise Audit Report and Reporting under CAROFree diagnostic mock

More Audit Report and Reporting under CARO questions