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Appointment of cost auditor

Samir (Account Head) (207 Points)

20 June 2013

Dear All

For last two A is cost auditor of the company, now we want to appoint B as cost auditor of the company for the Financial year 2013-14, should be need to give reason in form 23C or not . This change is required as service given by present cost auditor was below mark.
Thanks

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5 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 20 June 2013

Appointment of cost auditor is on year to year basis and the company is not bound to reappoint the same auditor in the next year. There is no need to give reasons for the change. The incoming auditor can seek NOC from the retiring auditor as per guidelines issued by the ICAI for the professionals.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 20 June 2013

The name of old cost auditor and the reasons for change are required to be given in form 23C.

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 20 June 2013

Yes pl., thanks for the correction. As per Col.8(c) of Form 23C reason has to be mentioned.