Cost Audit

[Guest]

 As per CAB dated 24/01/2012 of MCA, is it compusory to make an cost audit from the FY 2012 - 13 to company who covered under cost audit record rule 2011

[ajay singh]

As per order no. F. No. 52/26/CAB-2010 DATED 24 January, 2012, cost audit is compulsory for the industry covered under that order for the financial year 2012-13.

 

[Guest]

As per above mentioned circular if the company covered under Companies (Cost Accounting Records) Rules, 2011, then it shall be audited its cost account by cost auditor  since 1st April 2012. Is it correct?

[ajay singh]

Both the Rules i.e., Cost Accounting Record Rules (CARR) 2011 and Cost Audit Report Rules (CAR) 2011 are different. Those companies which are covered under CARR they have to submit compliance report in specified form to the Central Government and those for which order u/s 233B is given by the Central Government they have to submit Cost Audit Report to Central Government. Under the above order cost audit is compulsory for the Financial Year 2012-13

AI Summary

Cost audit requirement made compulsory for covered industries; compliance reporting and cost audit filing obligations clarified. The CAB order of 24 January 2012 makes cost audit compulsory for entities covered by that order for the relevant year. The summary distinguishes two regimes: the Cost Accounting Records Rules, 2011 require maintenance of records and submission of a specified compliance report to the Central Government, while where the Central Government issues an order under section 233B the Cost Audit Report Rules, 2011 require a formal cost audit and filing of a cost audit report by a cost auditor.