ICMAI notifies compulsory Communication Mandatory to Previous Cost Auditor

The Institute of Cost Accountant of India(ICMAI) has notified that Communication is Mandatory to the Previous Cost Auditor.

In a Notification ICMAI Stated, “ln the view of the decision taken in the 343rd Meeting of Council of the Institute held on 30th March, 2023, in furtherance to the Notification No. G/128/10/2022(3) dated 25th October, 2022, the Council reiterated that the communication is mandatory on the part of every cost accountant, in case he accepts a position as a Cost Accountant previously held by another Cost Accountant in Practice as per the following prescribed format.”

In case of any violation thereof will be considered as a violation under Clause (8) Part I Schedule I of the Cost and Works Accountants Act,1959.

Format of Communication to the Previous Cost Auditor

Date

TO’

Dear Sir,

I/We have been approached by M/S (name of the Company) to conduct the cost audit relating to its product(s) covered under Cost Audit of the Company/unit(s) located at ————— for the year ending on ————- I/We understand that you were the cost auditor of the Company immediately prior to this offer. Accordingly, I/We hereby communicate to you before I/We accept the said appointment. May I/We request you to provide your feedback on this matter. This communication is being addressed to you in view of the provisions of clause (8) of Part I of the First Schedule to The Cost and Works Accountants Act,1959.

I/We also hereby confirm that, based on the information provided by the Company, the audit fees that will be received by me/us for this assignment will not be lower than the fees received by you for the conduct of cost audit.

Thanking You,
Yours faithfully,

For M/s
Cost Accountant
M.NO.

Note: The communication must be addressed by Registered/ Speed Post.

For Official Notification Download PDF Given Below: