Can a Cost Accountant in employment be a Cost Auditor?
3 Replies
CA Rakesh Goenka
(CA & CS)
(872 Points)
Replied 07 October 2012
yes they can employed as cost Auditor.............
Pramod Limaye
(Chartered Accountant)
(172 Points)
Replied 08 October 2012
In my opinion, the answer is no. A practicing cost accountant can be appointed as cost auditor of a company. The cost accountant in employment will not be allowed to take up cost audit. Any other views are welcome.
CMA Ajay Jaisingh
(Ajay Jaisingh & Associates Cost Accountants Ahmedabad)
(79 Points)
Replied 10 October 2012
Cost Accountant in Employment can only sign the COMPLIANCE REPORT of the company that also when he is a member (ACMA/FCMA) of the Institute.
Cost Audit can only be conducted by a CMA in Practice.
Extracts from General Circular No. 15/2011 dtd.11-04-2011:
The company required to get its cost records audited under section 233B (1) of the Companies Act, 1956 shall appoint a cost auditor who is a cost accountant as defined in clause (b) of sub-section (1) of section 2 of the Cost and Works Accountants Act, 1959 (23 of 1959) and who holds a valid certificate of practice under sub-section (1) of section 6 of that Act and includes a firm of cost accountants.
Regards,
CMA Ajay Jaisingh
M.Com, ACMA
CMA Ajay Jaisingh
M.Com, ACMA
Ajay Jaisingh & Associates II Cost Accountants in Practice II
Office: 1204, "MATRIX", B/H Divya Bhaskar House, Nr. Vodafone House, Prahladnagar Corporate Road, Off S G Highway, Ahmedabad-380051.
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