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<h1>Cost Audit Report Rules 2001: Ensure Compliance with Cost Accounting Standards, Inventory Valuation, and Profitability Analysis.</h1> The Cost Audit Report Rules, 2001, under the Companies Act of 1956, outline the responsibilities and procedures for cost auditors appointed to examine a company's cost accounting records. The report includes an assessment of whether the company maintains proper cost records, provides necessary information, and follows prescribed cost accounting standards. Auditors evaluate the cost accounting system, budgetary controls, and related party transactions, offering observations and suggestions for improvements. The report also covers financial aspects such as inventory valuation, cost of production, and profitability analysis, including reconciliation with financial statements, to ensure transparency and compliance with statutory requirements.