Request for Comments

Exposure Draft of the Revised Standards on Cost Auditing (SCAs)

Second Proviso to Section 148(3) of the Companies Act, 2013 states that the auditor conducting cost audit shall comply with the cost auditing standards. As per 'Explanation' below this proviso, the expression 'cost auditing standards' mean such standards as issued by the Institute of Cost Accountants of India with the approval of the Central Government.

Standards on Cost Auditing (SCAs) are formulated by the Cost Audit & Assurance Standards Board (CAASB) and approved by the Council of the Institute. The SCAs as approved by the Council are sent to the Ministry of Corporate Affairs (MCA) for seeking approval of the Central Government for issuance of the Standards. Till date, MCA has conveyed approval to the 4 SCAs (SCA 101 to 104).

Based on deliberations held in CAASB, it was observed that Standards on Cost Auditing (SCAs) are essential to ensure quality of auditing & reporting and also to monitor, evaluate & regulate the audit services rendered by the Members of the Institute. However, Board felt the need to revise structure, framework, approach and the list of SCAs covering only the essential and relevant aspects of cost audit. It was decided to redraft & simplify the Requirements and Application Guidance in each Standard without relying on the International Auditing Standards (ISAs) issued by the IAASB of IFAC that are distinctly relevant only to the financial audit.

Accordingly, Technical Directorate of the Institute developed restructured framework and a new document containing revised Introduction, Glossary, Requirements & Application Guidance of 18 SCAs. CAASB in its 40th meeting held on 18th May 2022 approved the draft of revised SCAs and decided to expose it for seeking views/comments from all stakeholders by giving time of 21 days.

The comments / suggestions so received shall be compiled and placed before the CAASB for consideration. Once approved by the CAASB, the revised SCAs will be placed before the Council for its approval. After approval by the Council, Ministry of Corporate Affairs would be requested to consider & approve the revised/modified SCAs. Till these revised SCAs are approved by the MCA, existing SCAs 101 to 104 will continue to remain in-force.

In the above background, the CAASB seeks your views / comments / suggestions on the Exposure Draft of Revised SCAs in the following format latest by July 8, 2022 through email at

Sl. Requirement (R)/ Application Material (A) Suggestion Justification for Suggestion, if any

To download the Exposure Draft, please click here

Date: June 2, 2022

With best regards,
CMA Ashwin G Dalwadi
Chairman, CAASB (2021-22)
The Institute of Cost Accountants of India