COST AUDITOR

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Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2010 CAN A COMPANY AUDITOR BE APPOINTED AS COST AUDITOR

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 December 2010 A person cannot be practice in both field Cost auditor (CWA) & Statutory auditor(CA)

So it is not possible to appoint a same person for both audit

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 December 2010 But as per provisions of act it is possible

Section.233B
(1) Where in the opinion of the Central Government it is necessary so to
do in relation to any company required under clause (d) of sub-section (l)
of section 209 to include in its books of account the particulars referred to
therein, the Central Government may, by order, direct that an audit of cost
accounts of the company shall be conducted in such manner as may be
specified in the order by an auditor (who shall be a cost accountant within
the meaning of the Cost andWorks Accountants Act, 1959(23 of l959):
Provided that if the Central Government is of opinion that sufficient
number of cost accountants within the meaning of the Cost andWorks
Accountants Act, 1959(23 of l959), are not available for conducting the
audit of cost accounts of companies generally, that Government may, by
notification in the Official Gazette direct that, for such period as may be
specified in the said notification, such Chartered Accountant within the
meaning of the Chartered Accountants Act, 1949(38 of l949), as
possesses the prescribed qualifications, may also conduct the audit of the
cost accounts of companies and thereupon a chartered accountant
possessing the prescribed qualifications may be appointed to audit the
cost accounts of the company.(2) The auditor under this section shall be appointed by the Board of directors of
the company (in accordance with the provisions of sub-section (lB) of section 224
and with the previous approval of the Central Government:)
Provided that before the appointment of any auditor is made by the Board, a
written certificate shall be obtained by the Board from the auditor proposed to be
so appointed to the effect that appointment, if made, will be in accordance with
the provisions of sub-section (lB) of section 224.
(3) An audit conducted by an auditor under this section shall be in addition to an
audit conducted by an auditor appointed under section 224.
(4)An auditor shall have the same powers and duties in relation to an audit
conducted by him under this section as an auditor of a company has under subsection
(l) of section 227 and such auditor shall make his report to the Central
Government in such form and within such time as may be prescribed and shall
also at the same time forward a copy of the report to the company.
(5)(a) A person referred to in sub-section (3) or sub-section (4) of section 226
shall not be appointed or re-appointed for conducting the audit of the cost
accounts of a company.

Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2010 THANK U SIR

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