Cost Audit by CA

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 March 2010 Dear Experts

As per ICAI Notification, No.1.CA(37)/70:
A chartered accountant shall be deemed to be guilty of professional misconduct if he accepts appointment as Cost Auditor of a Company u/s 233B of the Companies Act, 1956, while he:
• is an auditor of the company appointed u/s 224 of the Companies Act; or
• is an officer or employee of the Company; or
• is a partner, or is in the employment of an officer or employee of the company; or
• is a partner or is in employment of the company’s auditor appointed u/s 224 of the Companies Act, 1956; or
• is indebted to the company fro an amount exceeding Rs. 1,000, or has given any guarantee or provided any security in connection with the indebtedness of any third person to the company for an amount exceeding Rs. 1,000.

My Query is when CA can act as Cost Auditor

Rasesh

Rasesh (Expert)
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30 March 2010 Yes. CA can be appointed as cost auditor. But if he is the statutory auditor then not.

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CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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31 March 2010 Agreed..

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CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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04 April 2010 yes he can, but only when Govt. of India feel that there is not enough Cost Accountant. Till now it is not happened.

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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04 April 2010 you are right CMA Arif , but CA is also eligible for doing cost audit.

CMA RV Padmakumar.A

CMA RV Padmakumar.A (Expert)
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17 April 2010 CA are not eligible to cost audit u/s 233B of the companies act. till now since the beginning of the companies act 1956 no notification issued in the official gazette of Govt Of India regarding ca,s are eligible to cost audit.As if today only cost Accountants from ICWAI only eligible to cost audit u/s 233B of companies act 1956.This is the present position.

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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17 April 2010 CA are eligible to CENVAT Audit U/S 14AA

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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18 April 2010 CA are eligible but on condition that Central Government feel that there is not enough number of CMA(Cost Accountants)and till today it is not happened and i personally see this happen in near future too, because today there is no shortage of CMA.
yes now CA are eligible for Cenvat audit u/s 14 A & 14 AA

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CMA RV Padmakumar.A

CMA RV Padmakumar.A (Expert)
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18 April 2010 In India after the introduction of Companies act 1956 till today no practicing chartered accountants done Cost audit u/s233B of the companies act this is the present situation,it may or may not change.Till today only cost accountants holding certificate of practice from ICWAI can do cost audit u/s233B.

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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18 April 2010 Agree with Experts, i corrected my self that Cost audit u/s233B is not allowed to CA, but Cenvat Audit u/s 14A,14AA are allowed also to CA.