India Audit Lens
CARO 2020 audit checklist
A practical checklist for collecting CARO applicability facts, clause-wise evidence, exceptions, review comments, and reporting points before final audit reporting.
Confirm applicability and scope
- Confirm company type, financial year, CARO applicability, exclusions, and whether any clause is not applicable.
- Document source records used for the applicability conclusion, including statutory registers, management confirmation, and prior-year reporting notes.
- Keep entity understanding, reporting requirements, and materiality references in the engagement file.
Collect clause evidence
- For each applicable CARO clause, identify the data source, responsible preparer, evidence required, and review owner.
- Collect fixed asset records, inventory records, loans and advances details, statutory dues, related-party information, fraud representations, internal audit reports, and other clause-specific support.
- Mark each evidence item as received, pending, not applicable, exception noted, or partner review required.
Run audit procedures
- Perform clause-wise checks over source data, reconciliations, supporting documents, and management explanations.
- Record exceptions with amount, period, party, clause reference, evidence reference, and preliminary conclusion.
- Connect unresolved issues to working papers, queries, findings, and review comments before drafting report wording.
Prepare reporting points
- Translate reviewed exceptions into draft reporting points only after evidence and management responses are considered.
- Keep the final conclusion traceable to the clause, source file, procedure performed, exception status, and reviewer decision.
- Separate factual observations from auditor judgment and final reporting language.
Review and sign off
- Review open CARO points with manager and partner before final audit report preparation.
- Check consistency between CARO observations, financial statements, notes, audit findings, and management representations.
- Archive final clause status, evidence references, review notes, and report wording in the audit file.
Frequently asked questions
Does this checklist decide CARO reporting conclusions?
No. It is a workflow checklist for evidence collection, procedure tracking, exception documentation, and review. The auditor remains responsible for professional judgment and final reporting conclusions.
Can this be used for clauses that are not applicable?
Yes. Mark non-applicable clauses clearly with the basis for that conclusion so the review trail remains complete.
What should I bring for an AuditLens CARO demo?
Bring one current CARO working file, clause-wise evidence tracker, or sample reporting issue so the demo can show how evidence, exceptions, workpapers, and review notes stay connected.