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Company audit report

Jay (Member) (48 Points)

29 September 2014

Hi Experts

Need few suggestions/clarification from your end. I will be glad if you can help me please.

1) Our company auditor has prepared the Audit report. This is the first year. This audit report is signed by directors and Auditors. Do this Audit report be submitted to Government? If no, then what is the purpose of this Annual Audit Report. Auditors mentioned no need to submit to Govt

2) In the Audit Report, auditors has mentioned that they will be auditors for 5 years subject to ratification. Does that mean, we will not be able to change auditors before 5 years?

3) Is Company Audit Report same as Cost Audit Report? If no, then when Cost Audit Report needs to be prepared. Our company is a small software development company

Thanks for your time in advance.

Regards

Jay

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2 Replies

namrata attal (Student CA Final ) (49 Points)
Replied 06 October 2014

1) I think it is not compulsory to submit audit report to Government. Annual Audit Report includes all the details of your company which might help you in future in adverse situations.It can be referred as documentary evidence.

3) No, Company Audit Report is not same as Cost Audit Report.

Cost audit is an audit process for verifying the cost of manufacture or production an article on basis accounts as regard utilization of material or labour or other cost. In India, the central government empowers to issue the order of conducting the cost audit for specific industries under section 233B of the Companies Act 1956.

2. Applicability of Cost Audit

a) The company engaged in the production, processing, manufacturing, or mining activities and

b) The aggregate value of net worth of the Company as on the last date of the immediately preceding financial year exceeds five crores of rupees;

c) The aggregate value of the turnover made by the company from sale or supply of all products or activities during the immediately preceding financial year exceeds twenty crores of rupees;