Compliance with new rules for audit reports deferred to next financial year

Move comes as relief to companies, which will be able to use the additional time to prioritise allocation of resources and better prepare for enhanced requirements

The Ministry of Corporate Affairs has deferred the implementation of Company Auditor’s Report Order (CARO) 2020, which brought about important disclosure requirements, by a year to April 2022 a government notification said. This is the second time that the government has pushed the deadline for compliance of the CARO 2020.  

At the start of the first lockdown in March, MCA had deferred CARO 2020 implementation to 2020-21, keeping in mind auditing challenges during the pandemic such as physical verification of inventory, fixed assets, balance confirmations, fair value measurements, expected credit losses, going concern and impairment.

"Covid-19 has caused significant disruptions