Audit of cost accounts: central direction enables compulsory cost audits and mandatory reporting with prescribed powers and penalties. The Central Government may direct that a company's cost accounts be audited by a qualified cost accountant (or, by notification when cost accountants are unavailable, a suitably qualified chartered accountant). The board appoints the cost auditor with prior Government approval; the audit is additional to the statutory audit. The cost auditor has the same powers and duties as under section 227, must report to the Central Government and the company, and the company must furnish information, explanations, and full cooperation. Disqualifications, further information requests, circulation to members, and penalties for default are provided.