The Ministry of Corporate Affairs (MCA) has issued the Companies (Auditor’s Report) Order, 2016 (CARO 2016), on 29th March 2016. It replaces CARO 2015. Thereby, every report made by the auditor u/s 143 of the Companies Act (CA) 2013, comes under CARO. Whether they have been made before or after 1st April 2015. MCA wanted specific important matters to be reported in the financial statements of certain companies. According to CARO Applicability 2016, these matters must form a part of the Auditor's Report. You can find the list u/s 143 of the CA 2013. Accordingly, the auditor has to undertake all the necessary inspections and verifications of these points and then report. What is Audit? An audit is an objective examination and evaluation of the financial statements of the company. This is performed so that the records are fair. That the transactions actually took place. And that the transactions have been accurately represented. The audit can be ...