CARO 2020 (Companies (Auditor's Report) Order)
ESG & GovernanceA government order that requires auditors to report on specific matters, such as loans to related parties, defaults and frauds, in an annexure to the audit report.
CARO 2020 applies to most companies, other than banks, insurers and certain small companies. The auditor must report on items including property titles, loans and guarantees given to related parties, defaults on borrowings, use of short-term funds for long-term purposes, frauds noticed and whistleblower complaints. Because it asks direct questions, the CARO annexure often contains facts that the main accounts do not highlight.
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