Remuneration of the Cost Auditor

For the purpose of sub-section (3) of section 148, —

(a)

in the case of companies which are required to constitute an audit committee —

(i)

the Board shall appoint an individual, who is a cost accountant in practice who is a cost accountant , 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;

(ii)

the remuneration recommended by the Audit Committee under (i) shall be considered and approved by the Board of Directors and ratified subsequently by the shareholders;

(b)

in the case of other companies which are not required to constitute an audit committee, the Board shall appoint an individual who is a cost accountant in practice “who is a cost accountant or a firm of cost accountants in practice as cost auditor and the remuneration of such cost auditor shall be ratified by shareholders subsequently.

Notes, amendments & references (1)

Substituted Companies (Audit and Auditors) Amendment Rules, 2018 dated 07.05.2018 . To view the notification, Click Here