No E ; Notification No. V dated 12 th June, and G.
In this Order, unless the context otherwise requires, —. Every report made by the auditor under section of Act, on the accounts of every company examined by him to which this Order applies for every financial year ending on any day on or after the commencement of this Order, shall contain the matters specified in paragraphs 4 and 5.
If not, the inadequacies in such procedures should be reported;. If so, give the number of parties and amount involved in the transactions. If so, give the number of parties and the amount involved in the transaction;.
Companies (Auditor's Report) Order, 2016-(CARO)-Part 1
Whether there is a continuing failure to correct major weaknesses in internal control system;. This information is required only in case of transactions exceeding the value of five lakh rupees in respect of any party and in any one financial year.
If not, the nature of contraventions should be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal whether the same has been complied with or not? If yes, the period and amount of default to be reported;.
Reasons to be stated for unfavorable or qualified answers. Where the auditor is unable to express any opinion in answer to a particular question, his report shall indicate such fact together with the reasons why it is not possible for him to give an answer to such question.
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If not, the inadequacies in such procedures should be reported; c whether the company is maintaining proper records of inventory and whether any material discrepancies were noticed on physical verification and if so, whether the same have been properly dealt with in the books of account; iii a has the company granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section of the Act. If so, give the number of parties and the amount involved in the transaction; f whether the rate of interest and other terms and conditions of loans taken by the company, secured or unsecured, are prima facie prejudicial to the interest of the company; g whether payment of the principal amount and interest are also regular; iv is there an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services.
Whether there is a continuing failure to correct major weaknesses in internal control system; v a whether the particulars of contracts or arrangements referred to in section of the Act have been entered in the register required to be maintained under that section; and b whether transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time; This information is required only in case of transactions exceeding the value of five lakh rupees in respect of any party and in any one financial year.
If yes, the period and amount of default to be reported; xii whether adequate documents and records are maintained in cases where the company has granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities; If not, the deficiencies to be pointed out.
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