CARO Audit AI
Your AI companion for CARO 2020 reporting under the Companies Act, 2013. Every answer cites specific ICAI paragraph numbers, page references, and Companies Act provisions — straight from the Guidance Note on CARO 2020 (Revised 2022 Edition). 9 workflows spanning all 21 clauses — from applicability to the final CARO report.
Every Answer Backed by the Guidance Note
No generic AI responses. Every answer traces back to specific paragraphs and page numbers from the ICAI Guidance Note on CARO 2020 (Revised 2022 Edition)
Zero Hallucination
AI responds only from the ICAI Guidance Note and Companies Act 2013. Every citation is verifiable — paragraph number, page range, and Companies Act section reference included
Revised 2022 Edition
Based on the latest Revised 2022 Edition of the Guidance Note on CARO 2020, incorporating all ICAI announcements, MCA notifications, and clarifications applicable to statutory audits
Understands Context
Ask in plain language — the AI understands CARO reporting concepts and finds the right clause even if you don't know whether it's clause 3(iii)(a) or 3(ix)(b)
Companies Act Integrated
Sections 185, 186, 73-76, 143, 139 and all related Companies Act provisions cross-referenced throughout — so you always get the complete statutory picture
Every Stage of CARO Reporting — AI-Powered
From applicability testing to the final signed CARO report — a dedicated AI workflow for each CARO task
Research
Ask any question about CARO 2020. AI answers with specific ICAI paragraph numbers, page references, and Companies Act section citations. Conversation history with follow-up capability.
Applicability Check
Enter company type, paid-up capital, turnover, borrowings, and status. AI determines whether CARO 2020 applies, flags the exemption category (banking, insurance, small company, OPC, Section 8 etc.), and cites the governing paragraph.
Audit Program
Select clauses applicable to your engagement — AI generates a clause-by-clause audit program with verification steps, documents to request, sample sizes, and the ICAI paragraph reference for each procedure.
Report Drafter
Upload findings, trial balance, schedules — AI drafts the complete CARO 2020 report in the prescribed format, clause by clause, with qualified/unqualified/adverse wording supported by ICAI illustrative reports.
Document Analyzer
Upload any audit document — fixed asset register, loan schedules, related party register, CSR spend statement. AI cross-references with the Guidance Note to identify CARO reporting implications and flag non-compliance.
Qualification Drafter
Describe the observation — AI drafts a precise CARO qualification paragraph in auditor-appropriate language, references the specific clause, and mirrors the illustrative wording given in Appendix to the Guidance Note.
Companies Act Reference
Search Sections 185, 186, 73-76, 143, 139, 177, 188, Schedule III and related rules — each result cross-referenced with the CARO clause and ICAI paragraph where the provision is discussed.
Checklist Generator
Pick clauses and company profile — AI produces a ready-to-use working paper checklist with verification points, evidence required, tick-boxes, and ICAI paragraph references. Download to your audit file.
Express Report
Upload your rough notes, memo, or observations file — AI instantly produces a complete, clause-wise CARO report. Fastest path from audit working papers to a presentable first draft.
Full Coverage of CARO 2020
Every sub-clause of paragraph 3 — from PPE to subsidiary CARO reports — indexed, paragraph-mapped, and ready to query
Property, Plant & Equipment
Records, physical verification, title deeds, revaluation, benami proceedings
Inventory
Physical verification, coverage, discrepancies, working capital limits > Rs 5 crore
Loans, Investments, Guarantees, Security
Terms prejudicial to interest, schedule of repayment, overdue amounts, renewals, evergreening
Sections 185 & 186
Loans, investments, guarantees and security to directors and specified persons
Public Deposits
Compliance with Sections 73-76, directives of RBI and Companies (Acceptance of Deposits) Rules
Cost Records
Maintenance of cost records under Section 148(1) of the Companies Act, 2013
Statutory Dues
PF, ESI, GST, income tax, cess dues — regularity, outstanding arrears, disputed amounts
Undisclosed Income
Surrendered/disclosed transactions under Income Tax Act not recorded in books
Loans & Borrowings
Default to lenders, wilful defaulter status, term loan utilisation, short-term funds for long-term, group company funding
IPO / FPO / Preferential Allotment
End use of money raised, compliance with Section 42 and 62 of Companies Act
Fraud
Fraud by/on the company, Section 143(12) reporting, whistle-blower complaints
Nidhi Company
Net owned funds to deposits ratio, 10% unencumbered deposits, default in deposit payment
Related Party Transactions
Sections 177 & 188 compliance, disclosure in financial statements per applicable accounting standards
Internal Audit
Internal audit system commensurate with size and nature, consideration of internal audit reports
Non-cash Transactions
Non-cash transactions with directors — Section 192 compliance
RBI Act Registration
Section 45-IA registration, NBFC/HFC activities without CoR, core investment company status
Cash Losses
Cash losses in current and immediately preceding financial year
Auditor Resignation
Resignation of statutory auditors during the year and consideration of issues raised
Material Uncertainty
Ability to meet liabilities within one year — based on ratios, ageing, expected realisations
CSR Compliance
Section 135 — unspent CSR amount transfer, ongoing project funds, excess CSR adjustment
Subsidiary CARO Reports
Qualifications/adverse remarks in CARO reports of companies included in consolidated financials
From Question to Cited Answer in Seconds
A purpose-built pipeline that grounds every response in the ICAI Guidance Note
Ask or Upload
Type a question, upload a document, or pick a workflow. Plain-language queries, scanned PDFs, Excel schedules — all supported.
AI Retrieves
Semantic search identifies the exact paragraphs of the Guidance Note and Companies Act provisions that address your question.
AI Reasons
The model drafts a response using only the retrieved passages — no outside knowledge, no guesswork, no fabricated citations.
You Get Cited Output
Every paragraph carries a footnote pointing back to the exact ICAI page range and Companies Act section — audit-defensible from day one.
Built for Statutory Auditors
Whether you're signing a first CARO report or leading a Big-4 audit team — CARO Audit AI accelerates every step
Statutory Auditors
Small and mid-size firms — get ICAI-aligned guidance on every CARO clause without wading through 600+ pages
Engagement Partners
Review qualifications, vet clause conclusions, confirm applicability positions — all source-cited
CA Firms
Scale your statutory audit practice — AI handles clause research while your team focuses on judgment and sampling
Articles & Trainees
Learn CARO reporting with AI that cites exact ICAI paragraphs and Companies Act sections — faster than any textbook
Questions Auditors Ask
Straight answers on scope, source, and reliability
Which edition of the Guidance Note is loaded?
The Revised 2022 Edition — the latest published version of the ICAI Guidance Note on CARO 2020, incorporating announcements and clarifications issued by the Auditing and Assurance Standards Board.
Can the AI invent citations?
No. The retrieval layer only surfaces real paragraphs from the Guidance Note. The generation layer is instructed to refuse if no supporting passage is retrieved. Every citation is verifiable.
Does it cover the Companies Act 2013?
Yes. Sections 185, 186, 73-76, 135, 139, 143, 148, 177, 188, 192, Schedule III and related rules are cross-referenced throughout — wherever the Guidance Note discusses them.
Is the generated CARO report signature-ready?
The output is a first draft — high-quality, clause-aligned and cited. Auditor judgment, firm-specific wording, and partner review remain your responsibility before signing.
Are uploaded documents confidential?
Yes. Uploads are used only to answer your query. They are not used for model training and are purged per your retention settings.
Does it replace my audit judgment?
No. CARO Audit AI is a research and drafting accelerator. The statutory auditor retains full responsibility for conclusions, qualifications, and the final signed report.
Ready to Transform Your CARO Reporting?
Fully backed by the ICAI Guidance Note on CARO 2020. 9 AI workflows. All 21 clauses. From applicability to the signed report — CARO Audit AI has you covered.