MCA publishes the Companies (Auditor’s Report) Order 2020

The Ministry of Corporate Affairs vide Notification dated 25.02.2020 has issued the Companies (Auditor’s Report) Order 2020 in Supersession of Companies (Auditor’s Report) Order 2016. It shall come into force on the date of publication and shall govern the Audits from FY 2019-20 onwards.

Key highlights in the new order:

The Audit report shall show the following additional details from FY 2019-20:

1. Whether the company is maintaining proper records showing full details of intangible assets.
2. Whether the management physically verifies the property, plant and equipment.
3. The details of immovable property shown in the financial statements but not held in the name of the company etc.
4. Whether any proceeding is pending against the company.
5. Whether any discrepancies of 10% or more in the aggregate for each class of inventory were noticed.
6. Working capital limits sanctioned and investments made during the year.
7. The repayment overdue by the company and against the company.

Click here to read the Order.