Caro

Section 227 (4A) empowers the Central Government to issue suitable instruction to auditors to report on certain additional matters in the audit report of classes of companies notified.

Depending upon the circumstance, the Central Government may or may not consult with the ICAI.

In pursuance of the powers conferred by section 227(4A) the Central Government in consultation with the ICAI has issued CARO 2003, (Compaines Auditor's Report Order) that requires the auditor to make statement in terms of provision stated therein. It was applicable w.e.f 01/01/2003, and was further amended in November 2004.

In that Report , Auditor has to report on 21 matters (If CARO is applicable on that company)