Who is eligible for cost audit?

Cost Audit is a legal compulsion for: Every company cited in item (A) of rule 3 whose yearly turnover during the immediately preceding FY is Rs 50 crores or more.

Who Cannot be appointed as a cost auditor?

A person cannot be qualified for appointment as a cost auditor of a company, if he, according to the sub-section 2, is disqualified for appointment as a cost auditor of any other company that is a subsidiary of that company, or holding company of that company, or a subsidiary of that company's holding company.

Can CA do a cost audit?

30 March 2010 Yes. CA can be appointed as cost auditor.

Is cost audit mandatory in India?

Non Applicability of Cost Audit

The following Companies are not required to conduct the cost audit in India: The Company whose revenue from exports are in Foreign Exchange exceeds 75% of its total revenue. Operating from Special Economic Zone( SEZ).

Is cost accounting compulsory?

Synopsis. It may now become compulsory for all big and medium manufacturing companies to get their cost accounts audited, if an expert group's recommendation on the same is accepted by the government.

Cost Accounting | Cost Audit Objectives

Which industries are not subject to cost audit?

Regulated sectors include industries like petroleum products, drugs and pharmaceuticals, fertilizers, and sugar to name a few. While, the unregulated sectors cover industries, such as arms and ammunitions, cement, tea and coffee, milk products, and turbo jets and propellers, among others.

Why cost audit is done?

A cost audit represents the verification of cost accounts and checking on the adherence to cost accounting plan. Cost audit ascertains the accuracy of cost accounting records to ensure that they are in conformity with cost accounting principles, plans, procedures and objectives.

Who has to maintain cost records?

The Company “A” is required to maintain the Cost records for the current Financial Year whether it is foreign or domestic because the overall turnover from all of its products or services during preceding Financial year i.e. 2019-20 is 40 crore. Cost Records if applicable shall be maintained by Company in Form CRA-1.

What are the requirements of cost audit and financial audit?

Cost audit is an independent examination of the correctness of the cost statements and accounts and its conformity with the cost accounting plan. Financial audit is a systematic unbiased examination of a company or institution's finance books and records, so as to express the opinion on it.

Can a CMA do audit?

Since CMA cannot be appointed as auditors, question of the power to sign such audit reports does not arise. However, they can be CFO's and CEO's and sign financial statements in that capacity but not under the capacity of an auditor.

Can Internal Auditor be cost auditor?

Cost auditor

All companies to note: Both Chartered Accountants and Cost Accountants are equally eligible for appointment as Internal Auditors under section 138 of the Companies Act 2013.

What is the limit of cost audit?

Cost audit shall be conducted by the cost accountant who is appointed by the Board; In case of any default on the part of the company, it shall be punishable with the fine of an amount not less than INR 25,000, however, such fine cannot be more than INR 5 Lakhs.

What is scope of cost audit?

The scope of cost audit has two important aspects: Propriety audit. Efficiency audit.

Is cost audit applicable to construction company?

(d) As on date, no cost audit is applicable on the companies engaged in the construction and/or development (real estate) business.

How many types of cost audits are there?

There are two main aspects of cost audit : 1) Propriety Audit : It has been defined as "Audit of executive action and plans bearing on the finance and expenditure of the company". This audit is related to the propriety, i.e., fitness or rightness of the expenditure made.

Is cost audit applicable to NBFC?

Cost audit applicability for Non-Regulated Sectors – Cost audit is applicable if overall turnover of the company is Rs. 100 crore or more and aggregate turnover of individual products or services covered in Table-B is Rs. 35 crore or more in the immediately preceding financial year.

Is cost audit mandatory for all companies?

'Cost Auditing Standards' have been mandated. The Companies (Cost Records and Audit) Rules, 2014 are applicable to every company registered under the Act which are engaged in production of goods or providing of services listed in Table-A or Table-B of Rule 3.

Who can be appointed as auditor of company?

(1) A person shall be eligible for appointment as an auditor of a company only if he is a chartered accountant in practice. (2) Where a firm is appointed as an auditor of a company, only the partners who are Chartered Accountants in practice shall be authorised by the firm to act and sign on behalf of the firm.

Can a statutory auditor be a cost auditor?

Since the cost audit is also a statutory audit conducted under the Companies Act 2013, such a practice of not accepting cost audit as a statutory audit is summarily against the law and needs to be stopped.

Who Cannot be appointed as internal auditor?

Internal auditor may or may not be an employee of the company. Chartered Accountant means a Chartered Accountant whether engaged in practice or not. (Section 138(1) and Explanation to Rule 13(1) of Companies (Accounts) Rules, 2014. Statutory Auditor shall not be appointed as Internal Auditor of the Company.

Who is eligible for statutory audit?

A statutory auditor of a company is a person appointed to verify the correctness of the accounting records of the company. As per the Companies Act, 2013, only a practising Chartered Accountant (CA) is eligible to be appointed as the statutory auditor in a company.

Can we do CMA after MBA?

CMA after MBA in Finance is a logically functionally aligned qualification which may give a push to your career. Additional specialization in HR after MBA finance may not be benifical. CMA after MBA in Finance is a logically functionally aligned qualification which may give a push to your career.

Is CMA better than CA?

However, in today's monetary terms, Job Availability, Scope, and Knowledge as well as Opportunities, CA is considered a better option than CMA.

Can CMA work in bank?

A CMA is eligible to appear in all central Govt Services like UPSC, BANK recruitment Board, Railway Recruitment Board, All Group-I and Group-II services in any state and Union Territory, ICoAs(Indian Cost Accounts Service) Which is equivalent to IAS,IRS, etc.

Can I do CMA with BCom?

Students after completing their 10+2 with any subject (Science/Commerce/Arts) are eligible to apply for BCom with CMA Courses. ICWAI is the only exam that is conducted for providing admission in CMA courses at different levels such as- Foundation course, Intermediate course and final course.