Techniques for Cost Audit and Cost Records

Techniques for Cost Audit and Cost Records

We are all in the respective profession and we are serving  india to  contributing our diverse knowledge in cost management. In india income tax department and GST departments are actively working for default of even 100 rupees default by assesse.

But why MCA is not responding against our queries in respect of statutory compliances of cost records and cost audits, in which aspect MCA left the concept of introducing new E- form for CRA-1 (cost records) along with filling of cost audit report for every financial year to central government . Even we have to re-think about our ethical values of our profession. I have never seen the notice from MCA regarding Non compliances of cost records and cost audits to companies.

My following observations :

1. Audit report given by Statutory Auditors  of the company  contains mistakes, he  can’t understand the turnover definition of services or Products for applicability of cost records . Simply he mentions about cost records in CARO report as not required.Based on the CARO companies will approach us. We have to put full stop for these activities. For that we need to collect data using technology.
2.  Need a Changes in AOC-4 and AOC-4 XBRL for automatic pop-up of details of cost auditor and cost records .At present situation if we put “NO” in AOC-4 , It doesn’t ask again for cost records and cost audit. We have to ask MCA for automatic validation of company turnover and  8 digit code of  ITC -HSN  in  principal product column for POP-UP of Cost auditor and Cost records details in AOC-4 and AOC-4 XBRL .We need technical help from MCA’S Cost audit branch.
3. Notices for companies regards why cost auditor has not appointed based on the previous year turnover of AOC-4 and AOC-4 XBRL..
4. Additional fees like 100 per day if CRA-4 is not filled after due date

By CMA Smapath Babu