Role of CMAs:

1. Internal Audit (Clause 138)

2. Cost Audit for Manufacturing and Service Sector (Clause 148)

3. Merger and amalgamation of companies. (Clause 232)

4.  Appointment of administrator (Clause 259)

5. Company Liquidators and their appointments (Clause 275)

6. Provision for professional assistance to Company Liquidator (Clause 291)

7. Power to order examination of promoters, directors (Clause 300)

8. Qualification of President and Members of Tribunal (Clause 409)

9. Right to legal representation (Clause 432)

Clause138 -Internal Audit:

138. (1) Such class or classes of companies as may be prescribed shall be required to appoint an internal auditor, who shall either be a chartered accountant or a cost accountant, or such other professional as may be decided by the Board to conduct internal audit of the functions and activities of the company.

CLAUSE 148-Cost Audit for Manufacturing and Service Sector:


—        Scope for maintenance of cost accounts enlarged to include companies engaged in provision of such services as may be prescribed.

—        Central Government empowered to direct cost audit for such class of companies as it considers necessary.

—        Central Government while issuing directions for cost audit shall prescribe the criteria of “Turnover” or “Net Worth”

—        Central Government approval for appointment of cost auditors not required.

148.(1) Notwithstanding anything contained in this Chapter, the Central Government may, by order, in respect of such class of companies engaged in the production of such goods or providing such services as may be prescribed, direct that particulars relating to the utilisation of material or labour or to other items of cost as may be prescribed shall also be included in the books of account kept by that class of companies:

 Provided that the Central Government shall, before issuing such order in respect of any class of  companies regulated under a special Act, consult the regulatory body constituted or established under such special Act.

148.(2) If the Central Government is of the opinion, that it is necessary to do so, it may, by order, direct that the audit of cost records of class of companies, which are covered under sub-section (1) and which have a net worth of such amount as may be prescribed or a turnover of such amount as may be prescribed, shall be conducted in the manner specified in the order.

148.(3) The audit under sub-section (2) shall be conducted by a Cost Accountant in practice who shall be appointed by the Board on such remuneration as may be determined by the members in such manner as may be prescribed:

Provided that no person appointed under section 139 as an auditor of the company shall be appointed for conducting the audit of cost records:

(Compiled by – Cost Assistant Vaibhavi Chauhan In Guidance Of CMA Rohit J Vora, Controlling Partner of Rohit & Associates, who can be contacted at [email protected] or on his cell No. 09820217893)

More Under Company Law


  1. T.N.Panja says:

    Thanks for initiating the steps, to spread information regarding the role to played by Cost Accountants under the new Companies Act and its growing demand in Indian Economy and Industries.

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September 2021