Month: December 2021

Limitation on Scope: A limitation on the scope of the auditor’s work may sometimes be imposed by the entity, for example, when the terms of the engagement specify that the auditor will not carry out an audit procedure that the Read More …

An auditor’s report is considered to be modified when it includes: 1. Matters That Do Not Affect the Auditor’s Opinion • emphasis of matter 2. Matters That Do Affect the Auditor’s Opinion • qualified opinion • disclaimer of opinion • Read More …

An unqualified opinion should be expressed when the auditor concludes that the financial statements give a true and fair view in accordance with the financial reporting framework used for the preparation and presentation of the financial statements. An unqualified opinion Read More …

Where, in the auditor’s report, the answer to any of the questions referred to in paragraph 4 is unfavourable or qualified, the auditor’s report shall also state the reasons for such unfavourable or qualified answer, as the case may be. Read More …

The Companies (Auditor’s Report) Order, 2003 (CARO, 2003) was issued in June 2003 and came into force on the 1st day of July 2003. The said Order, from the date it came into force, superceded the MAOCARO, 1988. Further, the Read More …

Paragraph 2 of the Order provides that it shall not apply to:  a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);  an insurance company as defined in clause (21) Read More …

Companies Covered by the Order: The Order applies to all companies except certain categories of companies specifically exempted from the application of the Order. The Order also applies to foreign companies as defined in section 591 of the Act. According Read More …

The requirements of the Order are supplemental to the existing provisions of section 227 of the Act regarding the auditor’s report. However, there are certain points of distinction between the Order and the requirements of section 227, which are as Read More …

The Central Government, in exercise of the powers conferred, under sub-section (4A) of section 227 of the Companies Act, 1956 (hereinafter referred to as “the Act”), issued the Companies (Auditor’s Report) Order, 2003, (CARO, 2003) vide Notification No. G.S.R. 480(E) Read More …

The following is an illustration of a complete auditor’s report incorporating the basic elements set forth and illustrated above. This report illustrates the expression of an unqualified opinion. “AUDITOR’S REPORT (Appropriate Addressee) We have audited the attached Balance Sheet of Read More …