We use cookies to understand which pages and tools are useful, nothing more — no ad tracking across other sites. You can change this later from the footer.

Skip to content
Lekhya.in

CARO (Companies Auditor's Report Order)

An order under the Companies Act requiring statutory auditors of specified companies to report on additional matters beyond the standard audit opinion — fixed assets, inventory, loans, statutory dues and more.

Read the full working guide

Related terms

  • CARO Clause 3(ii) — Inventory

    Requires reporting on whether physical verification of inventory has been conducted at reasonable intervals, and whether any discrepancies of 10% or more in aggregate for any class of inventory were properly dealt with in the books.

  • CARO Clause 3(vii) — Statutory Dues

    Requires reporting on the regularity of depositing undisputed statutory dues (GST, PF, ESI, income tax and others), and the extent and nature of any disputed dues.

  • CARO Clause 3(ix) — Default in Repayment

    Requires reporting on whether the company has defaulted in repayment of loans or borrowings to any lender, including the period and amount of default.

  • Capital Work-in-Progress (CWIP)

    Costs incurred on an asset under construction or development that has not yet been brought into use, carried separately from completed fixed assets.

Browse every term

231 terms in total, or go deeper with working procedures and worked examples in the resource library.

Back to the glossaryOpen the resource library