THE INSTITUTE OF COST ACCOUNTANTS OF INDIA
(Statutory body under an Act of Parliament)
Cost Auditing Standards Board
CMA Bhawan, 3, Institutional Area, Lodi Road
New Delhi – 110003
Phone: 011-24666112 / 109
Website: www.icmai.in __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
COMMUNIQUE FROM CHAIRMAN
Cost Auditing and Assurance Standards Board
Dear Professional Colleagues,
“Innovation distinguishes between a leader and a follower.” - Steve Jobs
I am pleased to inform you that the Cost Auditing and Assurance Standards Board (CAASB)
of the Institute is on the way to meet the target of evolving and approving 15 more
Standards of Cost Auditing (SCAs) by 31st March 2016. As you know that the Central
Government had already approved four SCAs as per provisions contained in section 148(3)
of the Companies Act 2013 and compliance of these are mandatory for the cost auditors.
CAASB in its 25th meeting held on 18th January 2016 approved SCA-110 on Cost Auditing on
Written Representation; & SCA-111 on Cost Auditing on Evaluation of Misstatements identified
during the Audit. These Standards are being sent by the Institute to the Central Government
for its approval.
CAASB in the said meeting also approved the Exposure Draft of SCA on “The Cost Auditor’s
Responses to Assessed Risks”. This SCA is hosted by the Institute for public comments/
suggestions, the last date being 27th February 2016. I urge all the stakeholders to send
their suggestions/ comments by the due date so that it may be improved upon before the
same is sent to Central Government for its approval.
In addition to above development, I am glad to inform you that the Institute has already
sent the following SCAs to Central Government for its approval:
SCA-105 Standard on Cost Auditing, “Agreeing the Terms of Cost Audit Engagements”;
SCA-106 Standard on Cost Auditing, “Audit Sampling”;
SCA-107 Standard on Cost Auditing, “Audit Evidence”
SCA-108 Standard on Cost Auditing, “Materiality in Planning and Performing Cost Audit”
SCA-109 Standard on Cost Auditing, “Cost Auditor’s Responsibility Relating to Fraud in an
Audit of Cost Statements”
Once the above Standards are approved by the Central Government, the compliance of
them shall be mandatory for the cost auditors in the audit of the cost records under section
148(2) of the Companies Act 2013.
I request the members to kindly forward suggestions / comments on the Exposure Drafts
so that the Standards can be improved. I request the Chapters to organize Study Circle
Meetings to discuss on the EDs on SCAs and forward the comments, even if NIL comments.
I wish all of you prosperity and happiness on the occasion of Basant Panchami, Shivaji
Jayanti and Guru Ravidas Jayanti.
2nd February 2016 (CMA P. Raju Iyer)
CMA P. Raju Iyer Council Member
CMA Balwinder Singh Council Member CMA Niranjan Mishra Council Member
CMA Amit Anand Apte Council Member CMA Dr. I. Ashok Council Member CMA Vijender Sharma Council Member CMA Rakesh Singh Past President, ICAI CMA B.B. Goyal Advisor, ICWAI – MARF CMA Mrityunjay Acharjee Balmer Lawrie & Co Ltd CMA S.A. Murali Prasad Practicing Cost Accountant Shri R. Asokan Advisor (Cost) CMA Ms Parvathy Venkatesh PHD Chamber Ms Yashodhara Ray Chaudhuri O/o CAG of India CA Manish Garg ASSOCHAM CMA M.K. Anand CERC Shri M.P. Vijay Kumar CII CMA P.V. Bhattad President CMA Manas Kumar Thakur Vice-President
CMA J.K. Budhiraja Sr. Director(Technical)