Page 246 - DCOM204_AUDITING_THEORY

Auditing Theory

Notes
Table 12.1: Clause by Clause Comparison of MAOCARO with CARO

Sr.
No. Particulars MAOCARO CARO
1. Full name Manufacturing and Other Companies (Auditor's Report)
Companies (Auditor's Order 2003
Report) Order 1988
2. With effect from Accounting periods ending Accounting periods ending on
on any day on or after 1st any day on or after 1st July 2003
November 1988
3. Applicability The order does not apply to The order does not apply to
Banking, Insurance Banking, Insurance Company,
Company and Company Company formed u/s. 25 of
formed u/s. 25 of Companies Act and private
Companies Act limited company if:
paid up capital and reserves not
more that ` 50 Lacs and has not
accepted any public deposits and
does not have outstanding loan of
` 10 Lacs or more from any bank
or financial institution and does
not have turnover exceeding ` 5
Crs.
4. Clause relating to Maintenance of proper Same as MAOCARO
Fixed Assets records of fixed assets,
physical verification of
fixed assets and accounting
of material discrepancies on
physical verification

Whether any fixed assets No such reporting is required
have been revalued during
the year and if so the basis
of revaluation should be
indicated

No such reporting is If substantial part of fixed assets
required have been disposed off during the
year whether it has affected the
going concern
5. Clause relating to Whether physical Same as MAOCARO. However,
Inventories verification carried out at instead of mentioning finished
reasonable intervals in goods, stores, spare parts and raw
respect of finished goods, materials CARO mentions the
store, spare parts and raw word "inventory". Thus, now WIP
materials can also be included in the list
which earlier was not there.
Whether procedures Same as MAOCARO
relating to physical
verification of stocks
reasonable and adequate in
relation to the size of and
nature of the business of the
company. If not
inadequacies to be reported
Contd...

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