overview of cost auditing standards CMA (Dr.)

Transcript:overview of cost auditing standards CMA (Dr.):
overview of cost auditing standards CMA (Dr.) BALWINDER SINGH Chairman, Cost Accounting Standards Board & President (2019-20), The Institute of Cost Accountants of India The cost audit report is required to be in conformity with the “cost auditing standards” approved by Central Government as referred to in Section 148(3) of the Companies Act The Central Government has approved the 4 Cost Auditing Standards which came into force with effect from 11th September 2015: Cost Auditing Standard-101 on Planning an audit of Cost Statements; Cost Auditing Standard-102 on Cost Audit Documentation; Cost Auditing Standard-103 on Overall objectives of the independent cost auditor and the Conduct of an Audit in Accordance with Cost Auditing Standards; and Cost Auditing Standard-104 on Knowledge of business, its processes and the business environment 2 Introduction How Standards are formulated? Standards are issued by the Cost Audit & Assurance Standards Board under the authority of the Council of the Institute of Cost Accountants of India. While formulating standards, the CAASB takes into consideration the applicable laws, usage and business environment prevailing in India, relevant provisions of Cost and Works Accountants Act, Rules and Regulations, Code of Professional Ethics, Cost Accounting Standards and other Statements issued by the Institute. The Standards issued by the CAASB are aligned, to the extent possible, with other recognised Standards issued in India and prevailing International Practices. If a particular standard or any part thereof is inconsistent with a law, the provisions of the said law shall prevail. 3 Cost Auditing Standards Composition of the CAASB The composition of the CAASB is broad based to ensure participation of all interest groups in the standard setting process. Apart from six members of the Council of the Institute nominated in the CAASB, the following are also represented on the CAASB: Head, Cost Audit Branch, Ministry of Corporate Affairs, Government of India One member nominated by the Comptroller & Auditor General of India Two members to be nominated by the Regulatory bodies (SEBI, CERC) Two eminent members of the Institute in Public Practice Two members representing Industry / Industry Associations / Professional Institutes (ASSOCHAM, PHDDCI, CII) In addition, the President is authorised to include a maximum of two eminent persons having relevant knowledge and expertise not falling under the categories mentioned above. President and Vice President of the Institute are ex-officio members 4 Cost Auditing Standards Exposure Draft is also sent to the following bodies: Ministry