Opinin/qualification in caro reprt

This query is : Resolved

Report Abuse Follow Query Ask a Query

Soumyabrata

Soumyabrata (Querist)
Follow

29 April 2013 Is it mandatory to reply on openion/qualification of CARO Reort in the Board Report. Please advise.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

30 April 2013 Yes. The auditor's comments in terms of the CARO,2003 form part of the audit report and, therefore, the board wll be bound to give in its report the fullest information and explanations ( section 217 ) regarding every adverse comment therein.

Message likes : 1 times

Guest

Guest (Expert)

30 April 2013 YES, IT IS MANDATORY TO GIVE EXPLANTION FOR QUALIFYING REMARKS OF AUDITOR

Message likes : 1 times

Soumyabrata

Soumyabrata (Querist)
Follow

30 April 2013 What are the parameters to differentiate whether the report is qualified or with adverse remarks or with reservation or a mere opinion/suggestion for betterment? If there are only few suggestions for the bettermet of internal control, then also is it mandatory to mention in Board Report? Plz help.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

30 April 2013 Audit reports should not contain 'suggestions'.

However, the different types of report are explained below. Please distinguish and set out the parameters.

1) Unqualified report - when auditor concludes that financial statements give a true and fair vies.

2) Qualified report - when auditor encumbered few situations which do not comply with GAAP, the rest of the financial statements are fairly presented.

3) Adverse report - when auditor feels that auditee's financial statements are materially misstated and do not confirm with GAAP.

4) Disclaimer report - when auditor could not form or refuses to form an opinion on financial statements.