Duties of the Cost Auditor

Duties of the Cost Auditor:-


The duties of the cost auditor are also similar to those of the (fi nancial) auditor of the company
has under sub-Section (1) of Section 227 (Section 223B(4)).The duties of the cost auditor inter-alia
include:
(a) To ensure that the proper books of accounts as required by Cost Accounting Records Rules
have been kept by the company so far as it appears from the examination of those books and
proper returns for the purpose of his audit have been received from branches not visited by
him;
(b) To ensure that the Cost Audit Report and the detailed cost statements are in the form
prescribed by the Cost Audit Report Rules by following sound professional practices i.e. the
report should be based on verifi ed data and observations may be framed after the company
has been afforded an opportunity to comment on them;
(c) The underline assumptions and basis for allocation and absorption of indirect expenses are
reasonable and are as per the established accounting principles;
(d) If the auditor is not satisfi ed in any of the aforesaid matters, he may give a qualifi ed report
along with the reasons for the same;
(e) Sending the Report to the Cost Audit Branch within 180 days from the end of the fi nancial
year with one copy to the company;
(f) Sending his replies to any clarifi cation, that may be sought by the Cost Audit Branch on his
report. Sending such replies within 30 days from the date of receipt of communication calling
for such clarifi cation.