The Institute of Chartered Accountants of India (ICAI) has provided a Guidance Note on the Companies (Auditor’s Report).
The Auditing and Assurance Standards Board (AASB) has been constituted by the Institute of Chartered Accountants of India (ICAI) for the formulation of Engagement and Quality Control Standards (Standards on auditing, review, other assurance, quality control, and related services).
Posing a major objective of delivering a direction to the auditors, AASB Builds Guidance Notes, Technical Guides, Implementations Guides, and other publications on generic as well as industry-specific issues in auditing. A regular awareness program is being held by the board all over the country on the standards of auditing and additional auditing factors to update the knowledge of the members. In July 2020, the AASB issued the Guidance Note on the Companies (Auditor’s Report) Order, 2020 to deliver clear advice on reporting needs of CARO 2020.
The Ministry of Corporate Affairs vide notification dated 24th March 2021 has allotted an amendment to Schedule III to the Companies Act, 2013. Schedule III, as improvised need several disclosures in financial statements some of which consist of correspond to the reporting needs of CARO 2020. Under the mentioned amendments, AASB would have revised and drawn the “Guidance Note on the Companies (Auditor’s Report) Order, 2020 (Revised 2022 Edition)” to furnish the guidance on several clauses of CARO 2020 in a simpler to comprehend language.
