Duties of cost auditor under companies act 2013

This query is : Open

Guest

Guest (Querist)

02 May 2017 What are the various duties of cost auditor under the companies act. Should he report on any matters as provided under various subsections of section 143??

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
Follow

03 May 2017 It is the duty of cost auditor to comply with cost auditing standards and to submit his report to BOD

Sub-rule (7) of Rule 6 of the Companies (Cost Records and Audit) Rules 2014 states that “the provisions of sub-section (12) of section 143 of the Act and the relevant rules made thereunder shall apply mutatis mutandis to a cost auditor during performance of his functions under section 148 of the Act and these rules”.
As per sub-section (12) of section 143 of the Companies Act 2013, extract of which is given above, it is obligatory on the part of cost auditor to report offence of fraud which is being or has been committed in the company by its officers or employees, to the Central Government as per the prescribed procedure under the Rules.
As per the proviso to above sub-section, it has been stated that in case of a fraud involving lesser than the specified amount, the auditor shall report the matter to the audit committee constituted under section 177 or to the Board in other cases within such time and in such manner as may be prescribed.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
Follow

Upgrade to CAclubindia Pro. Subscribe Now!

Guest

Guest (Querist)

03 May 2017 Section 143(14) says" The provisions of this section shall mutatis mutandis apply to— (a) the cost accountant in practice conducting cost audit under section 148; or (b) the company secretary in practice conducting secretarial audit under section 204." Section 143(3) requires the auditor to report on the matters specified therein. 143(1) require the auditor to inquire on the matters specified therein and Rule 11 of C(A&A) R ,2014 also requires to express his comments on the matters stated therein. Whether the above subsections affect the cost audit?? Is the cost auditor required to report on any of such matters in those subsections and rules??