CMA Audit & Cost Report Services
Expert Cost Audit and CMA certification services — Cost Audit under Section 148, Cost Compliance Report, XBRL filing of cost accounts, applicability thresholds for manufacturing and service companies, and ICMAI standards compliance.
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What is a CMA Audit & Cost Report?
A Cost and Management Accountant (CMA) registered with the Institute of Cost Accountants of India (ICMAI, formerly ICWAI) is authorized to conduct Cost Audit under Section 148 of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014. Cost Audit involves examination of the cost records and cost of production/service to verify accuracy and compliance with the cost accounting standards. The Cost Audit Report must be submitted in Form CRA-3 and filed with the Central Government in Form CRA-4 (XBRL) within 30 days of receiving the report (and no later than 30 September). Cost Audit is mandatory for manufacturing companies with aggregate turnover above ₹25 crore and for service sector companies covered under the Rules with turnover above ₹100 crore. CMAs also assist with maintenance of cost records, preparation of project reports, bank credit (CMA data format), and financial analysis.
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Types of CMA Audit & Reports
Cost Audit — Section 148
Mandatory for prescribed manufacturing companies (turnover above ₹25 crore) and service companies (above ₹100 crore). CMA audits cost records and issues Form CRA-3.
Cost Compliance Report (CCR)
Companies required to maintain cost records but below the audit threshold must submit a self-certified Cost Compliance Report to MCA annually.
XBRL Filing — CRA-4
Cost Audit Report must be filed with the Central Government in Form CRA-4 in XBRL format within 30 days of receiving the report from the Cost Auditor.
CMA Data for Bank Credit
CMAs prepare CMA data (financial analysis in prescribed format) for banks to assess credit proposals — term loans, working capital, project financing.
Eligibility & Requirements
How We Conduct CMA Audit & Reports
Our ICMAI-empanelled CMA team conducts cost audits following Cost Auditing Standards and files CRA-4 in XBRL format within deadlines.
1Step 1: Assess Applicability & Appoint CMA
Determine if Cost Audit is mandatory based on turnover, product category, and Rules applicability. Pass Board Resolution to appoint the Cost Auditor within 30 days of the Board Meeting.
2Step 2: Maintain & Review Cost Records
Ensure cost accounting records are maintained as per CAS (Cost Accounting Standards). Review product-wise cost of production, overhead allocation, and cost sheets.
3Step 3: Conduct Cost Audit & Issue CRA-3
CMA team examines cost records, verifies cost statements, and issues the Cost Audit Report in Form CRA-3. Report includes variances, efficiency analysis, and observations.
4Step 4: File CRA-4 (XBRL) with MCA
File Cost Audit Report in Form CRA-4 in XBRL format within 30 days of receiving CRA-3 from the auditor (latest by 30 September). Also intimate the Central Government.
We also prepare CMA data reports in RBI/bank prescribed format for companies seeking credit facilities, project financing, or loan restructuring.
Documents Required
Production Records
- Product-wise cost of production statements
- Raw material consumption records
- Manufacturing overhead statements
Accounting Records
- Trial balance and general ledger
- Fixed asset register per product/service
- Overhead allocation and absorption basis
Regulatory Documents
- Board Resolution appointing Cost Auditor
- Previous year CRA-3 report
- MCA intimation of Cost Auditor appointment (CRA-2)
Post-Registration Compliance
Cost Auditor Independence
The Cost Auditor must be independent of the company. The same firm of CMAs that provides other services (e.g., CMA data, internal audit) can be the Cost Auditor subject to independence conditions.
CRA-2 — Intimation of Appointment
The company must intimate the appointment of Cost Auditor to the Central Government in Form CRA-2 within 30 days of appointment, before the financial year begins.
Cost Accounting Standards (CAS)
Cost records must be maintained following the 24 Cost Accounting Standards issued by ICMAI. Non-compliance with CAS is a qualification in the Cost Audit Report.
Rotation of Cost Auditors
Cost Auditors must be rotated every 5 years for listed companies. The firm can be re-appointed after a 2-year cooling-off period.
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