Difference between CARO 2016 and CARO 2020

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CARO 2016 and CARO 2020 are two different sets of rules and regulations for statutory audits in India.

CARO 2016 had 16 clauses while CARO 2020 has 21 clauses.
CARO 2020 introduced new reporting requirements related to fraud, internal financial controls, and corporate social responsibility.
CARO 2020 expanded the scope of reporting on related party transactions.
CARO 2020 requires reporting on defaults in repayment of loans or borrowings from banks or financial institutions.
CARO 2020 introduced reporting on the utilization of loans or advances for purposes other than the ones they were taken for.
CARO 2020 mandates reporting on the maintenance of cost records by certain companies.
CARO 2020 introduced reporting on the cash losses incurred by the company during the financial year.
CARO 2020 requires reporting on the adequacy and effectiveness of internal audit functions.
CARO 2020 introduced reporting on the compliance with provisions of the Benami Transactions (Prohibition) Act, 1988.
CARO 2020 expanded the scope of reporting on the utilization of money raised through initial public offerings (IPOs).

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