ICMAI releases Frequently Asked Questions ( FAQs ) on Maintenance of Cost Records and Audits under Companies Act
ICMAI has released FAQs on Maintenance of Cost Records and Audit as per Companies Act Regulations
ICMAI – Audits under Companies Act – Maintenance of Cost Records and Audits FAQ – Cost Audit Compliance FAQs – Taxscan
ICMAI – Audits under Companies Act – Maintenance of Cost Records and Audits FAQ – Cost Audit Compliance FAQs – Taxscan
The Institute of Cost Accountants of India ( ICMAI ) has recently issued a comprehensive set of Frequently Asked Questions ( FAQs ) pertaining to the Maintenance of Cost Records and Audit under the Companies Act 2013.
These FAQs, meticulously compiled by the Technical Cell, shed light on the intricacies of maintaining Cost Records and conducting Audits in accordance with the Companies ( Cost Records and Audit ) Rules 2014 ( CCRAR, 2014 ).
Over time, the Ministry of Corporate Affairs has introduced various revisions to CCRAR 2014, incorporating insights from discussions with the Ministry, addressing Technical Cell's experiences, and considering sectoral consultations.
In response to these developments, the Technical Cell embarked on a thorough review of previously issued FAQs. After extensive deliberations, they have now released a comprehensive compilation, superseding the previous three tranches of FAQs related to CCRAR 2014.
The key points covered in the FAQs include:
1. The governing rules for maintaining cost accounting records and cost audits under Section 148 of the Companies Act, 2013.
2. Applicability and effective dates of the Companies ( Cost Records and Audit ) Rules, 2014, for regulated and non-regulated sectors.
3. Definition and maintenance requirements of cost records under Rule 2(e).
4. The status and role of Cost Accounting Standards/GACAP with respect to CRA-1.
5. The distinction between Cost Accounting Policy and Cost Accounting System.
6. Identification of products under a 4-digit CTA Code as per the Rules.
7. Requirements for preparing cost statements of products/services and reporting in cost audit reports.
8. Interpretation of industry/sector/product/service coverage in cases where CTA Heading and description may not align perfectly.
9. Duties of companies under Section 148 of the Companies Act, 2013, and related Rules, including the appointment and reporting obligations for cost auditors.
10. Clarification on the frequency of cost auditor certifications for monthly, quarterly, half-yearly, and yearly cost statements.
To Read the full text of the Order CLICK HERE
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