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

Under clause 3(xxi) of the Companies (Auditor's Report) Order, 2020, for a company whose consolidated financial statements are audited, what must the auditor report?

Clause 3(xxi) requires the auditor to state whether the respective auditors made any qualifications or adverse remarks in the CARO reports of companies included in the consolidated financial statements. If so, the report must give the company details and the CARO paragraph numbers containing them.

  1. AWhether the parent's own auditor has qualified the consolidated opinion under SA 705
  2. BWhether there have been any qualifications or adverse remarks by the respective auditors in the CARO reports of the companies included in the consolidated financial statements, with the company details and paragraph numbers if yesCorrect
  3. CWhether the group companies have paid dividends during the year
  4. DWhether the consolidated financial statements follow Ind AS 110

Explanation

Clause 3(xxi) requires reporting on any qualifications or adverse remarks by the respective auditors in the CARO reports of companies included in the consolidated financial statements. If there are any, the auditor indicates the details of the companies and the paragraph numbers of the CARO report containing them. The other options describe matters not asked by this clause.

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