A Cost Auditor is required to submit its report his/her/its report in the format as provided by the Cost Audit Report Rules. The Ministry of Corporate affairs has revised the Cost Audit report Rules in year 2011 vide G.S.R. 430(E) dated the 3rd June, 2011. Form-II of Cost audit report rules contains the Form of the cost auditor’s report and includes auditor’s observations and suggestions, and Annexure to the cost audit report and Form-III of the rules contains the Form of the performance appraisal report. The cost audit report rules apply to every company in respect of which an audit of the cost records has been ordered by the Central Government under sub-section (1) of section 233B of the Act.
Cost audit report of a company contains 11 Annexure. The details of which is as given
- General Information
- Cost Accounting Policy
- Product Group Details (for the company as a whole)
- Quantitative Information (for each product group separately)
- Abridged Cost Statement (for each product group separately)
- Operating Ratio Analysis (for each product group separately)
- Profit Reconciliation (for the company as a whole)
- Value Addition and Distribution of Earnings (for the company as a whole)
- Financial Position and Ratio Analysis (for the company as a whole)
- Related Party Transaction S (for the company as a whole)
- Reconciliation of Indirect Taxes (for the company as a whole)