Discuss the reporting requirements as per CARO, 2020, regarding: (i) Statutory Dues (ii) Transactions with Related Parties

CA Intermediate · Auditing and Ethics · RTP · September 2024
Discuss the reporting requirements as per CARO, 2020, regarding: (i) Statutory Dues (ii) Transactions with Related Parties

Suggested Answer and Working Notes:

(i) Reporting under CARO,2020 [Para 3 (vii) ] regarding statutory Dues whether the company is regular in depositing undisputed statutory dues including Goods and Services Tax, provident fund, employees' state insurance, income tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as on the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated;where statutory dues referred to in sub-clause (a) have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned (a mere representation to the concerned Department shall not be treated as a dispute); (ii) Reporting under CARO, 2020 regarding transactions with related parties [Para 3 (xiii) ] Whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act where applicable and the details have been disclosed in the financial statements, etc., as required by the applicable accounting standards.

Topics: Audit Report

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