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Is a cost auditor required to audit and certify monthly, quarterly, half-yearly and yearly cost statements?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kruthika asked almost 3 years ago

Is a cost auditor required to audit and certify monthly, quarterly, half-yearly and yearly cost statements?

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

COST RECORDS : The Central Government is empowered to direct, by order, in respect of such class of companies engaged in the production of such goods or providing such services as may be prescribed, direct that particulars relating to the utilisation of material or labour or to other items of cost as may be prescribed (given below in the tabular format) shall also be included in the books of account kept by that class of companies: Provided that the Central Government shall, before issuing such order in respect of any class of companies regulated under a special Act, consult the regulatory body constituted or established under such special Act. a. Every company falling under Companies (cost records and audit) Rules, 2014 (as given below in the tabular format) , including all units and branches thereof, shall, in respect of each of its financial year commencing on or after the 1st day of April, 2014, maintain cost records in form CRA-1. However in case of item no. 12 and 24 to 32 under category B i.e. non-regulated items (as given below in the tabular format) it shall apply in respect of each of its financial year commencing on or after the 1st day of April, 2015. b. The cost records shall be maintained in such manner so as to enable the company to exercise, as far as possible, control over the various operations and costs to achieve optimum economies in utilisation of resources and these records shall also provide necessary data which is required to be furnished under these rules. Exception to the Cost Records requirements : The requirement for cost records under these rules SHALL NOT BE APPLICABLE to a company which is classified as a micro enterprise or a small enterprise including as per the turnover criteria under Section 7(9) of the Micro, Small and Medium Enterprises Development Act, 2006.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Aarti Vadnerkar answered almost 3 years ago

COST RECORDS : The Central Government is empowered to direct, by order, in respect of such class of companies engaged in the production of such goods or providing such services as may be prescribed, direct that particulars relating to the utilisation of material or labour or to other items of cost as may be prescribed (given below in the tabular format) shall also be included in the books of account kept by that class of companies: Provided that the Central Government shall, before issuing such order in respect of any class of companies regulated under a special Act, consult the regulatory body constituted or established under such special Act. a. Every company falling under Companies (cost records and audit) Rules, 2014 (as given below in the tabular format) , including all units and branches thereof, shall, in respect of each of its financial year commencing on or after the 1st day of April, 2014, maintain cost records in form CRA-1. However in case of item no. 12 and 24 to 32 under category B i.e. non-regulated items (as given below in the tabular format) it shall apply in respect of each of its financial year commencing on or after the 1st day of April, 2015. b. The cost records shall be maintained in such manner so as to enable the company to exercise, as far as possible, control over the various operations and costs to achieve optimum economies in utilisation of resources and these records shall also provide necessary data which is required to be furnished under these rules. Exception to the Cost Records requirements : The requirement for cost records under these rules SHALL NOT BE APPLICABLE to a company which is classified as a micro enterprise or a small enterprise including as per the turnover criteria under Section 7(9) of the Micro, Small and Medium Enterprises Development Act, 2006. Exception to the Cost Audit requirements : The requirement for cost audit under these rules SHALL NOT BE APPLICABLE to a company covered under the Rules if revenue from exports, in foreign exchange, exceeds 75% of its total revenue OR if it is operating from a special economic zone. COST AUDIT : In a case the Central Government is of the opinion, that it is necessary to do so, it may, by order, direct that the audit of cost records of class of companies, which are covered under sub-section (1) of Section 148 and which have a net worth of such amount as may be prescribed or a turnover of such amount as may be prescribed, shall be conducted in the manner specified in the order. Provided that the report on the audit of cost records shall be submitted by the cost accountant in practice to the Board of Directors of the company. a. The cost auditor shall forward his report to the Board of Directors of the company within a period of 180 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. b. Every company covered under these rules shall, within a period of 30 days from the date of receipt of a copy 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. -

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