Reality checks

Key issues in CARO 2020 that fox auditors)

Treatment of whistle-blowing complaints

■ Complaint resolution mechanism not fully evolved in India ■ Auditors want clearer guidelines for considering a complaint for scrutiny and their oversight limited to financial frauds

Reporting of benami transactions

■ No defined method of reporting benami transactions, wilful defaults

■ Such deals challenging to verify if the company does not disclose them

Reporting of loans; ability to meet future liabilities

■ Companies have to provide details of loans, advances, guarantee, etc ■ Disclosures have to be made of defaults, wilful defaulter status ■ Reporting company’s ability to meet future liabilities is subjective