CARO 2020 (Companies Auditor's Report Order 2020) requires reporting on 21 specific clauses across PPE, inventory, loans, deposits, statutory dues, internal controls, fraud reporting, and more. CORAA's assembler drafts every clause from the books and the working papers already done. Where the books settle the question — zero PPE, no auditor resignation, no cash loss — the clause arrives concluded Yes / No / reasoned N/A. Where only an auditor can conclude — inventory physical verification, deposits compliance, fraud, related-party compliance, going concern, disputed dues — the draft arrives Pending with its source data and governing question. Nothing enters Annexure A until you confirm it.
Two paths to the same audit conclusion. One leaves traces; the other doesn't.
The assembler walks all 21 clauses against the entity's books and linked working papers — loans, investments, statutory dues, borrowings, related parties, ratios — checks each against its Companies Act paragraph and ICAI Guidance Note reference, and drafts the response with the underlying rows cited.
The judgment areas draft to Pending with their source data and governing question — PPE and inventory physical verification (dates and discrepancies), deposits compliance under Sec 73-76, fraud reporting under Sec 143(12), related-party compliance, going-concern material uncertainty and disputed statutory dues. The auditor concludes each with documented evidence; the Annexure-ready meter counts only confirmed clauses.
The Schedule III amendment of 2021 requires 11 financial ratios with an explanation for any variance over 25% vs prior year. CORAA computes the ratios, flags the variances, and prompts the auditor for the explanation; the disclosure feeds the Ratios note directly.
Every CARO clause is anchored to its Companies Act paragraph reference and CN 2022 (Guidance Note 2022) paragraph. The auditor knows exactly which statute is being addressed.
Investments (3), Sec 185/186 compliance (4), statutory dues (7), default in repayment (9), fund diversion (10), term loan application (11), internal audit (12) and more conclude straight from the books; inapplicable clauses resolve to a reasoned N/A by entity type. Judgment clauses draft to Pending — never to a guessed answer.
Physical-verification clauses ask the auditor to confirm dates and discrepancies. Deposits require Sec 73-76 compliance; fraud reporting ties to Sec 143(12). Each Pending row carries the governing question and its source data — never a guessed answer.
The Schedule III amendment of 2021 requires 11 financial ratios with an explanation for any variance over 25%. CORAA pulls variances from the Schedule III Ratios tab and prompts the auditor for each explanation.
