CARO (Companies Auditor's Report Order)
CARO is an order under the Companies Act requiring statutory auditors to report on specific matters for most companies, including whether fixed assets have been physically verified and whether discrepancies were properly recorded.
Among other matters, CARO requires the auditor to state whether the company maintains proper records of property, plant and equipment; whether these assets have been physically verified by management at reasonable intervals; and whether any discrepancies noticed were properly dealt with in the books.
This makes physical verification a statutory audit requirement, not just an internal control best practice — an auditor's CARO qualification for unverified or unreconciled assets is a real reporting consequence.
How AssetIQ helps
AssetIQ's mobile verification app and Reconciliation Agent produce the exact evidence a CARO review asks for: verification campaign records, discrepancy classification, and a trail showing how every discrepancy was resolved.
See Mobile Physical Verification →