CARO Clause 3(xiv) — Internal Audit System
Requires reporting on whether the company has an internal audit system commensurate with its size and nature of business, and whether internal audit reports were considered by the statutory auditor.
Related terms
- CARO Clause 3(xii) — Nidhi Company Compliance
Applicable only to Nidhi companies, requiring reporting on compliance with the net owned funds to deposits ratio and other Nidhi-specific regulatory requirements.
- CARO Clause 3(xiii) — Related Party Compliance
Requires reporting on whether related party transactions comply with Sections 177 and 188 of the Companies Act and have been disclosed as required by the applicable accounting standards.
- CARO Clause 3(xix) — Material Uncertainty on Liabilities
Requires the auditor to state whether, based on financial ratios, ageing and expected cash flows, material uncertainty exists about the company's capability to meet its liabilities as they fall due within one year.
- CARO Clause 3(xv) — Non-Cash Transactions with Directors
Requires reporting on whether the company has entered into any non-cash transactions with directors or persons connected to them, and whether the provisions of Section 192 have been complied with.
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