Clause 4(vii) of 'Companies Auditors Report Order (CARO), 2003' requires the auditor to comment whether the company has ___________.
an internal audit system
an audit programme
a check list
all of the above
The correct option is A an internal audit system Clause 4(vii) of Companies Auditor's Report Order (CARO) 2003 requires that auditor has to comment on the internal audit system of the companies as specified. Auditor has to comment that whether the company has an internal audit system commensurate with its size and nature of its business .
In case of listed companies and/or other companies,
a. having a
paid-up capital and reserves exceeding INR 50 lacs as at the
commencement of the financial year concerned, or
b. having an
average annual turnover exceeding INR 5 crores for a period of
three consecutive years immediately preceding the financial year