# Cost Auditor under the Companies Act, 2013
## Who can be a Cost Auditor?
The qualification and disqualification rules applicable to statutory (financial) auditors apply equally to cost auditors.
- A cost auditor must be a Cost Accountant (member of ICMAI) holding a Certificate of Practice.
- Disqualifications under Section 141 (e.g., indebtedness, business relationship, relative being a director) apply mutatis mutandis to cost auditors.
## Reporting Line
- The cost auditor submits the Cost Audit Report to the Board of Directors (BoD).
- The Board, in turn, forwards the report (along with full information and explanation on every reservation/qualification) to the Central Government within 30 days of receipt.
## Default / Penalty
| Defaulter | Punishable Under |
|---|---|
| Company and every officer in default | Section 147(1) (penalty for contravention of audit provisions) |
| Cost Auditor | Section 147(2) to (4) (same penalties as a statutory auditor — fine, refund of remuneration, damages, and possibly fraud consequences) |
## Key Point
The cost auditor occupies the same position vis-à-vis cost records as the statutory auditor does to financial statements — hence the parallel framework of qualifications, duties and penalties.