Procedure For Appointment of Cost Auditor

Procedure-Appointment-of-Cost-Auditor

Procedure For Appointment of Cost Auditor

 1.Obtain Consent and Certificate for Appointment as Cost Auditor under section 148 of the Companies Act, 2013 pursuant to section 141 of the Companies Act 2013 and Rule 4(1) of the Cos. (Audit and Auditors) Rules, 2014.
   2. In case, the company is required to constitute an audit committee, the Board shall appoint an individual, who is a cost accountant in practice, or a firm of cost accountants in practice, as cost auditor on the recommendations of the Audit committee, which shall also recommend remuneration for such cost auditor.
3.   The remuneration shall be approved by Board of Directors and also ratified by the shareholders, it clearly shows that now shareholders will have say in finalization of remuneration of the Cost Auditor
4.   If the company is  not required to constitute an audit committee, the Board shall appoint an individual who is a cost accountant in practice or a firm of cost accountants in practice as cost auditor and the remuneration of such cost auditor shall be ratified by shareholders subsequently
5.    Convene a board Meeting by issuing notice under section 173 of the Companies Act 2013 to pass resolution for appointment of Cost Auditor and remuneration thereof on the recommendations of the Audit committee (if applicable) which shall be ratified by the company in general meeting.
6.      Send the appointment letter to the auditor to act as Cost auditor of the Company.
7.      Receive acceptance letter from the Cost auditor.
8.    File intimation in Form CRA-2 with Ministry of Corporate Affairs within 30 days of the Board Meeting in which the Cost Auditor was appointed or within 180 days of the beginning of the year whichever is earlier.
9.    Convene next board meeting to decide the time, place and venue for holding General meeting of members for ratification of the appointment of cost auditor and authorize a person to send notice of general meeting.
10. Convene the general meeting and pass the necessary resolution.
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