1.16     Query

Form of auditors report under MAOCARO, 1975

1.The querist has sought the opinion of the Expert Advisory Committee as to whether MAOCARO Report should be within the body of the Auditors Report or whether it could be an Annexure to the Auditors Report.

                                                                              Opinion                                     June 24, 1987

1. The Committee notes that para 52 of the Statement on the Manufacturing and Other Companies (Auditors Report) Order 1975 (Issued under Section 227(4A) of the Companies Act, 1956) , issued by the Research Committee of the Institute of Chartered Accountants of India, states:

The comments under the Order may, if so desired, be given in the form of an Annexure to the report. However, when the comments are given in an Annexure, it is necessary to refer to the Annexure in the main report and it is advisable to sign the Annexure in addition to singing the main report .

2. On the basis of the above, the Committee is of the opinion that an auditor can include his comments under the MAOCARO either in the main body of his report or in an Annexure thereto in accordance with the recommendations made in the aforesaid Statement of the Research Committee.

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