Form of Application to the Corporate Law Authority for Appointment of Cost Auditor Auditing Help

1. Name of the company together with the address of its registered office and the date of its incorporation;

2. Status of company;

3. Capital structure of the company;

4. Principal line(s) of business of the company;

5. Proposal of which the Corporate Law Authorities approval is sought indicating the product for which cost audit is ordered:

6. (a) The name and address of the cost auditor who is recommended to be appointed;

(b) Whether the proposed cost auditor is a Chartered Accountant within the meaning of Chartered Accountants Ordinance, 1961 (X of 1961), or Cost and Management Accountant within the meaning of the Cost and Management Accountants Act, 1966 (XVI of 1966), and whether he has a certificate of practice;

(c) The association-ship/fellowship No. of the cost auditor.

7. Whether the cost auditor is subject to any disqualification under rule 3 (3);

8. Remuneration for the cost auditor;

9. The financial year or years to be covered by the cost audit;

10. Date of the meeting of the directors recommending the name of the cost auditor;

11. A certified copy of the resolution passed by the directors of the company sanctioning the proposal for which Corporate Law Authority’s approval has been sought;

12. Name and address of the previous cost auditor, if any, together with the financial year of the company which was subjected to cost audit;

13. If there is any change in the appointment of cost auditor, the reasons therefore may be stated;

14. Declaration

I/We solemnly declare that facts stated in the application are true to the best of my/our knowledge, information and belief.

Dated: This ___________, day of _____________ , 200 ________

NOTE: The application should be enclosed with challan of Rs. 200/= being application fee and resolution of BOD relating to appointment of Cost Auditor.

Cost Auditor’s Report

I/We …………………………having been appointed to conduct an audit of cost accounts of Messrs ………………………………. have examined the books of account and the statements prescribed under clause (e) of sub-section (1) of section 230 of the Companies Ordinance, 1983 and the other relevant record for the year ended on and report that:

(1) I/We have/have not obtained all the information and explanations which to the best of my/our knowledge and belief were necessary for the purposes of this audit.

(2) In my/our opinion:-
(a) proper cost accounting records as required by clause (e) of subsection (1) of section 230 of the Companies Ordinance, 1984 (XL VII of 1984) and as required by these rules, have been have not been kept by the company;

(b) proper returns, statements and schedules for the purpose of audit of cost accounts have/have not been received from branches not visited by me/us;

c) the said books and records give/do not give the information required by the rules in the manner to required; and

(3) In my/our opinion and, subject to best of my/our information’-

(a) the annexed statement of capacity utilization and stock-in-trade are/ are not in agreement with the books of accounts of the company and exhibit true and fair view of the company’s affairs;

(b) cost accounting records have/have not been properly kept so as
to give a true and fair view of the cost of production, processing,
manufacturing and marketing of the under mentioned products of
the company.

The matter contained in the ANNEX forms part of this report.

Dated: This _____________ , day of_____________

Posted on November 4, 2015 in Cost Audit

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