Cost Audit
A Cost Audit is a systematic verification of cost accounts to ensure accuracy and adherence to cost accounting principles. At Diwakar and Associates, we treat it as a strategic health check for your manufacturing efficiency—helping you stay compliant while improving profitability and operational control.
Why is it Done?
Beyond the statutory requirement, a cost audit helps management identify operational bottlenecks, eliminate unproductive expenses, and determine the actual profitability of individual products.
When & Where Applicable?
- Regulated sectors: Overall turnover ₹50 Crore+, Product turnover ₹25 Crore+
- Non-regulated sectors: Overall turnover ₹100 Crore+, Product turnover ₹35 Crore+
- Maintenance of cost records is mandatory if turnover exceeds ₹35 Crore
What is the Outcome?
You receive a comprehensive report compliant with MCA requirements along with actionable insights to improve efficiency and strengthen your bottom line.
How we perform the Audit at Diwakar and Associates
We follow a streamlined, four-step methodology to ensure minimal disruption to your daily operations:
1
Data Diagnosis
We review your existing cost accounting systems and records.
2
Verification
Our experts validate material costs, labor overheads, and utility allocations.
3
Analysis
We compare actual performance against standards to find variances.
4
Reporting
We submit Form CRA-3 to the Board and ensure the final report is filed with the Central Government via Form CRA-4.
What is the Outcome?
You receive a comprehensive report that satisfies the Ministry of Corporate Affairs (MCA) requirements and provides a clear roadmap to improving operational efficiency and strengthening your bottom line.
Our Commitment to You
Accuracy is the cornerstone of our practice. At Diwakar and Associates, we deliver meticulous cost audits that are fully compliant with the latest MCA regulations and Cost Accounting Standards (CAS). You can expect timely filings, complete data security, and actionable insights that drive efficiency far beyond the balance sheet.
Need Expert Cost Audit Support?
Get professional guidance to ensure compliance and improve cost efficiency.
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