Powers of the Cost Auditor

Powers of the Cost Auditor:-


Section 233B(4) of the Companies Act, 1956 gives the cost auditor same powers as the fi nancial
auditor has under Section 227(1). In addition, Rule 6 of the Cost Audit Report Rules also requires
the company and every offi cer thereof, including the persons referred to in sub-Section (6) of Section
209 of the Act to make available to the cost auditor, within 135 days from the close of the fi nancial
year of the company, such cost accounting records, cost statements, other books and documents, Annexure and Proforma to the Report, duly completed as would be required for conducting the
cost audit, and shall render necessary assistance to the Cost Auditor so as to enable him to complete
the cost audit and submit his report within the time limit specifi ed in rule 5. Section 233B(6) further
provides that it shall be the duty of the company to give all facilities and assistance to the cost
auditor so as to enable him to complete the audit and send the report within the prescribed time
limit.

The powers of the cost auditor under sub-Section (1) of Section 227 are as under:
- Right to access at all times to the books and accounts and vouchers of the company, whether
kept at the head offi ce of the company or elsewhere.
- Entitled to require from the offi cers of the company such information and explanations as he
may think necessary for the performance of his duties as an auditor.