Cost Audit
Cost audit and cost record maintenance for companies covered under CRA rules.
Certain manufacturing and service companies are required to maintain cost records and undergo a cost audit under the Companies (Cost Records and Audit) Rules. We help determine applicability, maintain compliant cost records, and coordinate the cost audit with a qualified cost accountant.
Why this matters for your business
- Clarity on whether cost audit applies to your business
- Cost records maintained in the prescribed format
- Timely filing of CRA-2 and CRA-4 with the MCA
- Better product-level cost visibility for management decisions
What you'll need to share
- Product/service-wise cost data
- Raw material and production records
- Financial statements
- Prior year cost audit report, if applicable
- Details of installed capacity and actual production
How It Works
A comprehensive look at how a cost audit is planned, verified, and filed under the Companies Act.
Audit Planning & Appointment
Determine applicability based on turnover limits, appoint a Cost Accountant (CMA), and establish the scope.
Data Gathering & Review
Collect all relevant cost statements, books of accounts, and supporting documents.
Verification & Analysis
The CMA verifies financial data, conducts analytical procedures, and ensures compliance with Cost Accounting Standards.
Identification of Issues
Identify errors, wastages, incorrect allocations, and other reportable items such as payments to specified persons.
Preparation of Cost Audit Report
The CMA prepares and certifies the Cost Audit Report, including all prescribed particulars.
Filing & Submission
File the audited cost statements and report electronically on the MCA portal before the due date.
Cost Audit questions, answered
Companies engaged in specified regulated and non-regulated sectors crossing prescribed turnover thresholds under the Companies (Cost Records and Audit) Rules.
Only a practising Cost Accountant (member of ICAI/ICMAI) can be appointed as a cost auditor.
It is the form used to notify the appointment of a cost auditor to the Central Government.
Yes, many more companies must maintain cost records than are required to get them audited; we help you assess both obligations.
Ready to get started with Cost Audit?
Share a few details and our team will reach out with next steps within one business day.