Companies (cost accounting record )rules, 2011

This query is : Resolved

sreenivasa.bhat.s

sreenivasa.bhat.s (Querist)
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20 November 2012 Dear All,

What is the procedure for appointment of Cost Auditor for obtaining Cost Compliance Report as per the above rule??

Is it necessary to appoint such Auditor by the Board or it (the Cost compliance Certificate provided by the Practicing Auditor) only needs the approval of the Board?.

As per the above rule, there is no such provision for appointment of Auditor by the Board, but it clearly says that the compliance report should be approved by the Board of Directors, then only company can file the Form A.

Kindly revert at the earliest.

regards,
Sreenivasa Bhat

CA SAYANTAN BASU

CA SAYANTAN BASU (Expert)
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21 November 2012 Dear sir,
As per Rule 5 OF COST ACCOUNTING RECORDS RULES ... the Compliance Report and annexure thereto are required to be certified by a “cost accountant” as defined under Rule 2(c).As per Rule 7, the annexure to the Compliance Report is to be duly approved by the Board of Directors.
A “cost accountant” within the definition of these Rules does not include:
a) A member holding a part-time certificate of practice; or
b) A member who is in full time employment whose membership fees are in arrears;
c) A member of ICWAI who has been admitted as a member through reciprocal arrangement of membership by virtue of being a member of Institute of Management Accountants USA.

SO IT MAY BE COST AUDITOR APPOINTED /INDEPENDENT COST ACCOUNTANT ............