Cost audit obligations require auditors to attest to adequacy of cost records, standards conformity and report any material deficiencies. Form-II requires the cost auditor appointed under the Companies Act to audit cost records maintained under clause (d) of section 209 and to report whether necessary information was obtained, whether proper cost records were maintained to present true and fair view of costs and margins, whether branch returns were adequate, conformity with Cost Accounting Standards, adequacy of internal audit of cost records, and the existence of detailed unit wise and product/activity wise cost statements. The auditor must furnish a Performance Appraisal Report, record observations under paras (i)-(viii), indicate any qualifications against those paras, and sign and seal the report with membership number.