Auditors of car service platform GoMechanic had raised "red flags" in the company's accounting standards for the investors, a report in Mint said. In 2020, PwC India, the auditor of the company's holding entity Targetone Innovations Pvt Ltd, had issed a "qualified opinion" indicating that it could not provide a clean opinion of the accounts.

The firm did not maintain inventory records for receipts and issuance of goods directly received by the customers, the Mint report said, citing documents from the audit. 

In FY21 and FY22, the company's auditor BSR and Co., an affiliate of KPMG International, did not provide any qualification. In FY22, it issued a disclaimer of opinion stating that the "company has not established its internal financial controls with reference to financial statements". 

The company's co-founder Amit Bhasin on Wednesday admitted to