Difference in CARO 2016 and CARO 2020 Risk associated in sales Internal control Procedure to check sales As related questions SAs related questions

Question

Accepted Answer

CARO 2020 has additional reporting requirements and emphasis on internal control and risk management compared to CARO 2016.

CARO 2020 has added reporting requirements such as reporting on fraud, default in repayment of loans, and utilization of Corporate Social Responsibility funds.
CARO 2020 emphasizes on internal control and risk management, requiring auditors to report on adequacy and effectiveness of internal financial controls.
Procedure to check sales has been added as a new reporting requirement in CARO 2020.
SAs related to CARO 2020 include SA 250 on consideration of laws and regulations in an audit of financial statements.
Risk associated with sales includes the risk of misstatement of revenue, overstatement of sales, and understatement of returns and allowances.

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