Audit of Cost Accounts

Circular No. 9 - Reference No. Co-258(2)RCP/91- Audit of Cost Accounts Jul. 29, 2000 Pursuant to provisions of section 258 of Companies Ordinance, 1984 and Rule 3 of the Companies (Audit of Cost Accounts) Rules, 1998, the companies which are required to maintain cost accounting records prescribed by this Commission under section 230(1)(e) of Companies Ordinance, 1984, are, hereby, directed to furnish complete profile of the proposed Cost Auditors especially the following information with the applications seeking prior approval of Securities & Exchange Commission of Pakistan for appointment of Cost Auditor:- (i) In case, a firm of Cost & Management Accountant is appointed as Cost Auditor, details of qualified as well s supporting staff. (ii) In case, a firm of Chartered Accountant is recommended for appointment as Cost Auditor, in addition to details of qualified and supporting staff, the particulars of Cost and Management Accountant(s) associated with it. (iii) In case, a firm of Chartered Accountants does not associate a Cost & Management Accountant as suggested in (ii) above, it would disclose the experience of cost audit and particulars of such partners/employees who have actually been working and maintaining the cost accounts in some organization (Nazir Ahmed Shaheen) Joint Registrar

Distribution:

1. Institute of Chartered Accountants of Pakistan

2. Institute of Cost & Management Accountants of Pakistan

3. All Cement manufacturing Companies

4. All Vegetable Ghee/Cooking Oil manufacturing Companies

5. Pakistan Vanaspati Manufacturers' Association

6. Pakistan Cement Manufacturers' Association

7. All officers of SECP