New Cost Record and Audit Rules

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New Cost Record and Audit Rules

Postby Raviapte on Fri Jan 02, 2015 9:06 am

New Cost Audit Rules released by MCA

http://www.mca.gov.in/Ministry/pdf/Amendment_Rules_01012014.pdf

The scope has been substantially increased.
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Re: New Cost Record and Audit Rules

Postby babureddyicwa on Fri Jan 02, 2015 2:07 pm

New Year good news
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Re: New Cost Record and Audit Rules

Postby RVR on Fri Jan 02, 2015 3:16 pm

Let us congratulate the central council for restoring Cost Audit
'Let Noble Thoughts come to us from all sides' – Rigveda 1-89-i.
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Re: New Cost Record and Audit Rules

Postby manyanr on Fri Jan 02, 2015 3:49 pm

Congratulations to the President and his team for restoring significant portion of Cost Audit
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Re: New Cost Record and Audit Rules

Postby Himadri on Fri Jan 02, 2015 8:31 pm

Do you really finding it good for the profession? I urge to go deep and analyse what we get and what we loose...to me it is not upto satisfactory level...no general records maintenance...no CASs...no compliance...no PAR...no product group...a very limited industry coverage...ambiguity for 2014-15....in short we are loosing our visibility...and the paradox is institute is praising this for hiding their failure and making us foolish...very sad...Kindly click on the following link to see my brief observation on it
https://drive.google.com/file/d/0B0798zEUNoTmaERTZW0yUm56czg/view?usp=sharing
Last edited by Himadri on Fri Jan 02, 2015 8:37 pm, edited 2 times in total.
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Re: New Cost Record and Audit Rules

Postby subramanian on Fri Jan 02, 2015 10:00 pm

Present amendment is silent on CAS consequently CAS 4 certification gone? Costing records maintenance cleverly said included in books of accounts which will be certified by chartered accountant along with financial audit .Earlier compliance withdrawn is not restored .We may say cost audit is restored but CETA wise turnover Rs 35 crore most of the companies total turnover exceeding rs 1000crores also will not have cost audit. Consumer products cost audit benefitial to common man is quitely withdrawn for example soap
It is not negative or crtisicing ,for this announcement one year time is not required.
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Re: New Cost Record and Audit Rules

Postby himalendubose on Tue Jan 06, 2015 2:49 pm

Please compare the 6th Nov 2012 audit notification and compare with the current notification.

http://icmai.in/upload/carr-car/section-3/Sec3-Order-06Nov.pdf

Observations:

1 Current notification mostly covers 2012 notification. see the link enclosed above.

2 Automotive and components industry due to unknown reason completely left out

3 Packaged food industry left out due to unknown reason

4 Compliance certification left out and therefore there is a risk that the companies with turnover less then 100 crs will not maintane statutory cost records.

5 Cost records maintanence is linked to GACAP and CASs

6 Good for PCMAs and bad for cost accountants in service since Compliance certification has been deleted.

7 PCMAs might slip in a certification of cost records maintanence under CARO to help there business grow.

8 Cost accountants in service will only be hired by companies having turnover exceeding 200 crs. This is my opinion
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Re: New Cost Record and Audit Rules

Postby cma28321 on Tue Jan 06, 2015 3:45 pm

8 Cost accountants in service will only be hired by companies having turnover exceeding 200 crs. This is my opinion
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Very Few Cost Accountants in Service are now functionally working on Costing. Most of them are in the line of Accounting and Finance, moreover you get to see lot of our fellow professionals in F&A only a very low percentage of CMAs are right now in field of Costing - So .....................
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Re: New Cost Record and Audit Rules

Postby chinnasreddy on Tue Jan 06, 2015 4:25 pm

Listing and Net worth clauses are completely removed for both maintenance and audit of cost records which are very important in view of public and in the interest of nation.Further there was a clause of Public borrowing in the June 2014 rules for Cost Audit which is also missing.New rule of Export Turn over is imposed.
Also new rules are talking about over all turnover of all products including applicable product and is not talking about the companies where there is a single applicable product .
Over all the new rules are not in the interest of Industry,nation and public.
It is only an eyewash.

CMA C Sudhakar Reddy
C S Reddy & Associates,
Cost Accountants, No 198,
5th Cross, 4th Main, Srinivasnagar,
BSK 1st Stage, Bangalore-560050.
9449040633, 26697633, chinnasreddy@yahoo.co.in
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Re: New Cost Record and Audit Rules

Postby himalendubose on Tue Jan 06, 2015 5:08 pm

Listing and Net worth clauses are completely removed for both maintenance and audit of cost records which are very important in view of public and in the interest of nation.Further there was a clause of Public borrowing in the June 2014 rules for Cost Audit which is also missing.New rule of Export Turn over is imposed


Listed companies for products/services covered in the notification is suject to cost audit


Net worth is no more the criteria for cost records and cost audit. This is a positive step.

Exclusion for EOUs and companies in SEZ zone etc was always there
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