This document provides a comprehensive overview of cost audit, its historical context, and its current applicability under the Companies Act, 2013 and related rules. It details which types of companies are mandated to maintain cost records and undergo cost audits, including specific sectors and turnover thresholds. The guide also outlines the objectives and benefits of cost audits, the legal framework, and the procedural requirements for appointment and reporting. It's a valuable resource for businesses needing to understand their compliance obligations regarding cost audits.