The main provisions regarding cost audit as contained in the Act are :

• Certain class of companies engaged in the production of such goods or providing such services as may be prescribed and which have a net worth or turnover of such amount as may be prescribed may be directed to get their cost audit records audited.

• Cost audit has to be conducted by a Cost Accountant in Practice who is required to comply with cost auditing standards

• It shall be the duty of the company to give all assistance and facilities to the cost auditor.

• As per Section 143(14), the qualifications, disqualifications, rights, duties and obligations applicable to statutory auditors will also apply to a cost auditor.

• Cost auditor has to submit his report to the Board of Directors who in turn shall file it with the Central Government within 30 days of the receipt of the report.