New Cost Audit rules 'defies logic': ICAI
PrintListen to this Article
Seeking review of the rules, cost accountants' apex body ICAI said it excludes several industries from the cost audit ambit and that the new norms “defy logic".
The Corporate Affairs Ministry, which is implementing the new companies law, came out with revised rules for cost records and audit on June 30. The new rules "defies logic... and have totally ignored the fact that cost audit has a perfect synergy with the enterprise governance framework", the Institute of Cost Accountants of India (ICAI) said in a statement. According to the institute, the latest rules have been prepared on the philosophy that cost records should be maintained only in those industries where policy intervention might be required while ignoring the fact those cost accounting norms were not just to bolster administered pricing.
Contending the new norms would "adversely impact the competitiveness of the Indian industry," ICAI said it hopes the cost rules 2014 would be reviewed and modified in the interests of stakeholders. "The cost rules 2014 has merged cost accounting records rules and cost audit rules. The present rules have no reference to maintenance of records on the basis of Generally Accepted Cost Accounting Principles and Cost Accounting Standards unlike the 2011 rules," the statement said. The new cost audit rules cover strategic, regulated and sectors where public interest is involved. "However the industries listed have excluded large number of sectors that have been considered to be strategic, consuming huge resources and in public interest that were covered earlier," the statement said.
Requesting changes in the rules, the institute has already written to Corporate Affairs Minister Arun Jaitley in this regard. "The changes made in the new Rules will severely affect the profession, its members and students totalling to around 6,00,000, the stakeholders and the Indian economy at large," ICAI had said in its letter to Jaitley dated July 1. (PTI)
Category : ICAI | Comments : 0 | Hits : 473
The CA Institute has proceeded and notified its revised exam dates (announced on March 19) for the intermediate course examination and final examination despite a pending Supreme Court hearing slated for April 29 on postponement plea filed by some CA Students. An ICAI notification—gazetted on April 25 —showed that the intermediate course exams will be held on May 3, 5 & 9 (Group I) and May 11, 15 and 17 (Group II). The final exams are scheduled for May 2, 4 and 8 (Group ...
The Institute of Chartered Accountants of India (ICAI) has found gross negligence by edtech firm Byju's auditors, ICAI president Ranjeet Kumar Agarwal said on Wednesday. "Our inspection has found gross negligence on accounting practices by individual auditors of Byju's and accordingly we have recommended to the Financial Reporting Review Board (FRRB) to take punitive actions on auditors concerned," Agarwal told news agency PTI. Agarwal said, "The FRRB wil...
The Enforcement Directorate (ED) raided premises linked to Delhi Chief Minister Arvind Kejriwal’s personal secretary Bibhav Kumar, and Aam Aadmi Party (AAP) Rajya Sabha MP, Past President of ICAI Sh.ND Gupta in connection with a money laundering probe related to the Jal Board case. The central probe agency had last month arrested Jagdish Kumar Arora, the former chief engineer of the Delhi Jal Board. The probe agency claims that Arora awarded a contract worth Rs 38 crore to NKG Infrastru...
A bench of justice Bharav D Karia had observed that the activity of a CA includes that of accounting, auditing, refereeing, receivers, arbitrators and special commissioners as prescribed by the ICAI to be carried out on-premises and at places of managing partner may determine The Gujarat high court has ruled that a Chartered Accountancy (CA) firm should be classified as a professional establishment rather than a shop, commercial or retail entity and as a result, its employees are deemed ineli...
Notice Sent to Kumar Vishwas by Advocate (CA) Dr. Suneel Maggo for his Derogatory Remarks against Professionals (Chartered Accountants and Company Secretaries). We had discussed the matter with Advocate Suneel Maggo and the same has been uploaded on the youtube but on the pressure of Kumar Vishwas, Video has been removed 2 times. In his notice to Kumar Vishwas, He asked for Sorry to the Professional else Next Defemation Notice to Kumar Vishwas for his Derogatory Remarks against Chartered A...
Comments