Cost Audit
Cost Audit is a statutory audit conducted under the Companies Act, 2013 and the Companies (Cost Records and Audit) Rules, 2014 to examine the cost records, cost accounting systems, and cost statements of eligible companies. A Cost Audit helps businesses ensure accurate cost determination, improve operational efficiency, strengthen cost control measures, and maintain compliance with applicable legal and regulatory requirements.
At IndianSalahkar, we provide end-to-end Cost Audit services across India. Our experienced Cost & Management Accounting professionals assist with the verification of cost records, examination of cost accounting systems, preparation of audit reports, and compliance with statutory cost audit requirements. We ensure a smooth, transparent, and hassle-free cost audit process.
Who Needs Cost Audit Services?
Cost Audit Services are ideal for:
- Manufacturing Companies
- Engineering Companies
- Pharmaceutical Companies
- Cement Companies
- Steel & Metal Industries
- Chemical Companies
- Power & Energy Companies
- Infrastructure Companies
- Large Industrial Enterprises
Time Required
The Cost Audit process is generally completed within 10 to 20 working days, depending on:
Build Your Business with Confidence
Get your Cost Audit conducted by IndianSalahkar and ensure complete compliance with the applicable Cost Audit Rules and statutory requirements. Our experts perform a comprehensive review of your cost records and cost accounting systems to provide accurate audit reports, improve cost efficiency, and support better business decision-making.
Documents required
- Quotations for purchase of raw material.
- Material receipt for material purchased.
- Documents showing how much goods in work in progress category are finished as on date of the audit.
- Documents regarding method applied by company in relating to normal loss,scrap,pilferage,waste,defectives etc.
How we get it done
- Choose a servicePick what you need or ask us to suggest the right structure.
- Share your detailsFill the enquiry form or message us on WhatsApp.
- Expert call-backOur executive calls you to confirm scope and fees.
- Send documentsShare the checklist documents online — no office visit needed.
- Get it doneWe file, follow up and deliver your certificate.
Frequently asked questions
What are the objectives of cost audit?
Objectives of Cost Audit
- Prospective Objective: Under which cost audit aims to identify the undue wastage or losses and ensure that costing system determines the correct and realistic cost of production.
- Constructive Objectives: Cost audit provides useful information to the management regarding regulating production, economical method of operation, reducing cost of operation and reformulating Cost accounting plans .
What are the types of tax audit?
Types of Cost Audit
- Cost Audit on behalf of the management
- Cost audit on behalf of a customer
- Cost Audit on behalf of Government
- Cost Audit by trade association
- Statutory Cost Audit
What is the qualification for cost auditor?
Basic qualification for a cost auditor is the prescribed examinations and practices by the professional & Regulatory body for Cost & Management Accountancy of the country or in case a person is the member of other professional bodies, exemption should be allowed to him/her under the mutual recognition agreements (MRAs) to become a cost auditor.
Procedure of cost audit?
Cost audit comprises following three steps:
- Review
- Verification
- Reporting
For which companies,cost audit is applicable?
Cost audit applicability provisions are contained under rule 4 of the Companies (Cost Records and Audit) Rules, 2014. According to the said rule 4, the cost audit is applicable in the following situation –
- Table A specified goods/services –
- Overall annual total turnover of the company from all the products/services is INR 50 crore or more; and
- Aggregate turnover from the individual product/service for which cost records are required to be maintained is INR 25 Crore or more.
- Table B specified goods/services –
- Overall annual total turnover of all the products/services should be INR 100 crore or more; and
- Aggregate turnover from the individual product/service for which cost records are required to be maintained should be INR 35 crore or more.
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