Application of cost records (Read Previous Chapters >>)
Applicability for Cost Audit (Read Previous Chapters >>)
Maintenance of Cost Records
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Cost Audit
The category of companies covered by these rules shall within one hundred and eighty days ofthe commencement of every financial year, appoint a cost auditor and shall inform the cost auditor concerned of his or its appointment as such and file a notice of such appointment with the Central Government within a period of thirty days of the Board meeting in which such appointment is made or within a period of one hundred and eighty days of the commencement of the financial year, whichever is earlier, through electronic mode, in form CRA-2.
The auditor so appointed shall continue as cost auditor till the expiry of one hundred and eighty days from the closure of the financial year or till he submits the cost audit report, for the financial year for which he has been appointed.
As per amendment made to rules by notificationd ated 31-12-2014, any casual vacancy in the office of a cost auditor, whether due to resignation, death or removal to be filled by the Board of Directors within thirty days of occurrence of such vacancy and the company shall inform the Central Government in Form CRA-2 within thirty days of such appointment of cost auditor.
The cost auditor, shall submit the cost audit report along with his or its reservations or qualifications or observations or suggestions, if any, in form CRA-3
The cost auditor shall forward his report to the Board of Directors of the company within a period of one hundred and eighty days from the closure of the financial year to which the report relates and the Board of directors shall consider and examine such report particularly any reservation or qualification contained therein.
Company covered under these rules shall, within a period of thirty days from the date of receipt of acopy of the cost audit report, furnish the Central Government with such report along with full information and explanation on every reservation or qualification contained therein, in form CRA-4.
If the cost auditor,in the course of the audit has reasons to believe that an offence involving fraud has been committed against the company by officers or employees of the company, he shall immediately report the matter to the Central Government within time prescribed.
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Companies (Cost Records and Audit) Rules 2014 >>
Download Amended Format of CRA-2 CRA-3 and CRA-4 Click Here >>
Download Notification of Companies (Cost Records and Audit) Amendment Rules 2014 Click Here >>
