CARO or Companies Auditor’s Report Rule 2015 shall apply to every company including a foreign company as defined in clause (42) of section 2 of the Companies Act, 2013 given below:- Listed Companies Unlisted Public Companies Private Companies having: Paid-up Share Capital and Reserve Exceeding Rs 50 Lakhs; or Outstanding Loans exceeding Rs 25 Lakhs; or … Continue reading CARO 2015 Applicability Criteria
This Standard establishes the independent auditor’s overall responsibilities when conducting an audit of financial statements in accordance with SAs
- Ethical Requirements Relating to an Audit of Financial Statements: The auditor should apply the following fundamental principles of professional ethics relevant when conducting an audit of financial statements:
- Professional competence and due care
- Professional behaviour.
- Professional Skepticism: Professional skepticism includes being alert to, for example:
- Audit evidence that contradicts other audit evidence obtained
- Information that brings into question the reliability of documents and responses to inquiries to be used as audit evidence
- Conditions that may indicate possible fraud
- Circumstances that suggest the need for audit procedures in addition to those required by the SAs.