Cost accounts audit applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2013 What is the criteria for applicability of the Cost accounting records rules for the financial year 2012-13/
I also need guidance on the procedure of appointment of a Cost auditor.

Hemant Kumar

Hemant Kumar (Expert)
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08 August 2013 Central Government, in exercise of the powers conferred by clause (b) of sub-section
(1) of section 642 read with sub-section (4) of section 233B, and sub-section (1) of
section 227 of the Companies Act, 1956 (1 of 1956), and in supersession of the Cost
Audit Report Rules, 2001 has issued these rules.

These rules shall apply to every company in respect of which an audit of the cost
records has been ordered by the Central Government under sub-section (1) of section
233B of the Act.

Hemant Kumar

Hemant Kumar (Expert)
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08 August 2013 for more details go through following link.:

http://icmai.in/upload/carr-car/faq/FAQ2.pdf

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Hemant Kumar

Hemant Kumar (Expert)
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08 August 2013 The procedure for appointment of the cost auditor as prescribed by both the
circulars is:
1. Eligible companies to e-file its application for appointing a cost auditor with the
Central Government in the prescribed Form 23C within 90 days from the date of
commencement of each financial year.
2. MCA to approve the application within 30 days of filing Form 23C, if no approval
is received, then deemed approval for the appointment of cost auditor can be
assumed by the company according to Circular 1.
3. Company to issue formal letter of appointment (approved by the Board) within
30 days from the date of approval of MCA.
4. Cost auditor to file Form 23D within 30 days of date of formal letter of
appointment issued by the company