Master circular on Cost Accountlna Records and Cost Audit.

Cost audit independence: cost auditors barred from serving as internal auditors and must attend audit committee discussions without voting.

Master circular mandates that cost auditors must not serve as internal auditors for the same period to protect cost auditor independence, and that the statutory ceiling on appointments for a financial year counts consents and overdue reports. Appointment concludes on submission of the cost audit report to the Central Government; auditors remain subject to queries but may accept new appointments if the ceiling is not exceeded. Reports must fully disclose cost accounts, include prior-year data (with management-certified figures where applicable), and, where a firm is appointed, be signed by the responsible partner with membership number. Cost auditors must attend audit committee or board discussions on internal controls and cost-audit observations but are not members and have no vote.