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<h1>Cost audit requirement: companies must maintain prescribed cost records and submit cost audit reports to government.</h1> The Central Government may direct specified classes of companies to maintain particulars of material, labour and other prescribed cost items and, where necessary, order a statutory audit of those cost records for companies meeting prescribed thresholds. Such cost audit must be conducted by a Board appointed cost accountant, separate from the statutory auditor, adhering to cost auditing standards. The cost auditor reports to the Board; the company must furnish that report and explanations to the Central Government within thirty days, supply further information on request, and face penalties for defaults.