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CMA Intermediate · Corporate Accounting and Auditing · Statutory Audit under the Companies Act, 2013

Under CARO 2020, which of the following is a matter on which the statutory auditor must report in the audit report on a company's financial statements?

The auditor must report under CARO 2020 on whether the company maintains proper records of Property, Plant and Equipment showing full particulars, including quantitative details and situation. Dividend declaration, cost auditor appointment and website existence are not reporting clauses of the Order in this form.

  1. AWhether the company has maintained proper records showing full particulars of Property, Plant and Equipment, including quantitative details and situationCorrect
  2. BWhether the directors have declared an interim dividend during the year
  3. CWhether the company has appointed a cost auditor under the Companies Act
  4. DWhether the company has a registered website for investors

Explanation

CARO 2020 requires the auditor to state whether the company maintains proper records of Property, Plant and Equipment showing full particulars, including quantitative details and situation. The other options are not reporting clauses under the Order in this form.

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