Section 280 of the Companies Act, 2013
Section 280 of the Companies Act, 2013 deals with the Appointment and remuneration of cost auditor.
📜 Section 280 – Appointment and Remuneration of Cost Auditor
🔹 Key Provisions:
Appointment of Cost Auditor:
Every company which is required to have its cost records audited under Section 148(1) must appoint a cost auditor to audit the cost records for that financial year.
Board’s Role:
The Board of Directors is responsible for appointing the cost auditor within 180 days from the commencement of the financial year.
The appointment is to be approved by the Board and the company must inform the Central Government about the appointment.
Remuneration of Cost Auditor:
The remuneration of the cost auditor is to be fixed by the Board of Directors.
Any change in remuneration must be approved by the Board.
Filing with the Registrar:
The company must file a cost audit report along with the financial statements with the Registrar of Companies (ROC).
✅ Purpose:
To ensure proper audit of cost records by a qualified auditor, enhancing the transparency and accuracy of cost accounting in companies where it is mandatory.
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