“Section 224 (1) of the Companies Act, 1956 states that every company whether it is public or private limited shall have an auditor to audit its accounts.“
The basic principal of statutory auditing is to ensure that the financial statements such as the Balance Sheet, Profit & Loss Account and Cash Flow Statement gives true & fair view and are free from any material misstatements. Our approach to Statutory financial auditing services of the financial statements ensures that the accounts prepared are in accordance with the Generally Accepted Accounting Principles (GAAP).
Applicability of CARO(Companies Order Report Order) to companies
|1||Is the client not a company?|
|2||Is the client banking or insurance company?|
|3||Is the company licenced to operate under section 25 of the Act?|
Note: 1. If any of the answers to the above questions is ‘yes’, CARO is not applicable.
2. Whether the client is a private limited company?
– If answer above note 2 is yes check below mention point also
|1||Is the paid up capital and reserves less than or equal to 50 Lakhs rupees, at any point of time during the financial year?|
|2||Whether the company has not accepted any public deposit?|
|3||Whether the company does not have loan outstanding 25 Lakhs Rupees or more from any bank or financial institution, at any point of time during the year?|
|4||Whether turnover is less than or equal to Rs. 5 Crore|
Note: If answers to all the above questions are ‘yes’ CARO is not applicable