Cost audit report

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Querist : Anonymous

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20 October 2013 who has to keep cost records? in cost audit report what matter is include? pl guildeline on cost audit report format? to whom it is necessary to audit the cost audit? and who can do cost audit?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 October 2013 https://www.caclubindia.com/experts/ccr-car-1482144.asp#.UmOVepLrbIU

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 October 2013 The Central Government under section 233B of the Companies Act, 1956 may direct the companies to conduct the cost audit as per the provisions of above section. In exercise of these powers, the Ministry of Corporate Affairs, Cost Audit Branch issued cost audit orders dated 2nd May 2011, 3rd May 2011 (amended by 30th June cost audit order) 30th June 2011, 24th January 2012 and 6th November 2012. The Ministry of Corporate Affairs has also revised procedure for appointment of cost auditor on 11th April 2011and notified revised Companies (Cost Audit Report) Rules 2011 vide GSR 430(E) dated 3rd June 2011. The cost audit by the companies subject to audit should be conducted in the manner provided in these notifications read with Section 233B of the Companies Act 1956.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 October 2013 The Cost Audit can be done only by the Cost Accountant in Practice or Firm of Cost Accountants appointed as Cost Auditor for the Company

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 October 2013 “Cost Accountant” for the purpose of these rules means a cost accountant as defined in clause (b) of sub‐section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who is either a permanent employee of the company or holds a valid certificate of practice under sub‐section (1) of section 6 and who is deemed to be in practice under sub‐section (2) of section 2 of that Act and includes a firm of cost accountants;

“Cost accountant” means a person who is a member of the Institute;

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