Cost and Management Audit · Preparation and Filing of Cost Audit Report

Submission, Filing and Timelines of Cost Audit Report

Updated 11 October 2026 · Fact-checked

The cost auditor submits the cost audit report to the Board of Directors. The company then files it with the Central Government in Form CRA-4, through XBRL, within thirty days of receiving a copy. Any reservation or qualification must come with full information and explanation. Default attracts penalty under section 148(8).

Understand Submission, Filing and Timelines of Cost Audit Report

A cost audit has two separate legs after the work is done. First, the cost auditor reports to the Board of Directors. Second, the company sends the report to the Central Government. Different persons are responsible for each leg. This is the most common point of confusion in exams.

Section 148(5) says the report on the audit of cost records must be submitted by the cost accountant to the Board of Directors of the company. The cost auditor does not file with the Government.

Under the Companies (Cost Records and Audit) Rules, the cost auditor submits the report to the Board within 180 days from the end of the financial year to which the report relates. That period is fixed by the Rules, not by the Act text given here.

Section 148(6) then puts the duty on the company. Within thirty days from the date of receipt of a copy of the cost audit report, the company must furnish the Central Government with the report along with full information and explanation on every reservation or qualification in it. Under the Rules, this is done in Form CRA-4, filed electronically in XBRL mode on the MCA portal, with the prescribed fee.

Section 148(7) lets the Central Government call for further information or explanation after it reviews the report. The company must furnish it within the time the Government specifies. Section 148(8) makes default punishable. The company and every officer in default are punishable as provided in section 147(1). The cost auditor in default is punishable as provided in section 147(2) to (4).

Key rules to remember

Who reports to whom: Cost auditor → Board of Directors; Company → Central Government; Section 148(5) for the first leg, section 148(6) for the second. Never say the cost auditor files the report with the Government.
Auditor's deadline: Report to Board within 180 days from the end of the financial year; This comes from the Companies (Cost Records and Audit) Rules. Count from the year-end, not from the date of appointment.
Company's deadline: Filing date = date of receipt of copy of report + 30 days; Section 148(6). The clock starts on receipt of the copy by the company, not on the date of the Board meeting.
Form and mode: Form CRA-4, filed in XBRL mode with prescribed fee; Prescribed by the Rules. The Act text only says the company must furnish the report to the Central Government.
Accompanying explanation: Report + full information and explanation on every reservation or qualification; Section 148(6). If the report has no qualification, there is nothing to explain, but the report is still filed.
Further information: Central Government may call for more; company furnishes within time specified; Section 148(7).
Penalty for default: Company and officers in default: section 147(1). Cost auditor in default: section 147(2) to (4); Section 148(8). Learn who is punished under which sub-section of 147; do not guess amounts.

How to solve Submission, Filing and Timelines of Cost Audit Report questions

Most questions give you dates and ask for a due date, or give a lapse and ask for the consequence. Use the same method every time.

1Identify whose duty is being tested: the cost auditor (report to the Board) or the company (filing with the Central Government).
2Find the financial year-end. Add 180 days to get the auditor's latest date for submitting the report to the Board.
3Find the date the company received a copy of the report. Add thirty days to get the filing date for Form CRA-4.
4Check the report for reservations or qualifications. If there are any, the filing must carry full information and explanation on each.
5State the mode: Form CRA-4, XBRL, with the prescribed fee, as per the Rules.
6If there is a delay or omission, name the consequence: section 148(8), company and officers under section 147(1), cost auditor under section 147(2) to (4).
7Close with a clear conclusion in one line: complied or defaulted, and by whom.

Quickest way: Two-clock method

When to use it: Use for date-based MCQs and short numerical questions on due dates.

Draw two lines: Clock 1 (auditor, 180 days from year-end) and Clock 2 (company, 30 days from receipt of copy).
Count days month by month. Do not use rough month counts.
Attach one name to each clock: auditor owns Clock 1, company owns Clock 2.
Add the qualification rule: qualification means explanation must go with the filing.
Add the penalty line: section 148(8).

Common mistakes in Submission, Filing and Timelines of Cost Audit Report

Saying the cost auditor files the report with the Central Government.
Students merge the two legs of the process because both involve the report.
Fix: Remember: auditor to Board under section 148(5); company to Central Government under section 148(6).
Counting the thirty days from the date the auditor signs the report.
Students assume the signing date is the starting point.
Fix: The text says thirty days from the date of receipt of a copy of the report. Start the count from receipt by the company.
Counting 180 days from the date of appointment or from the Board meeting.
Confusion with other deadlines that run from an event.
Fix: The 180 days run from the end of the financial year to which the report relates.
Forgetting the explanation on qualifications.
Students remember only the filing and the form name.
Fix: Section 148(6) requires full information and explanation on every reservation or qualification. Always mention it.
Naming the wrong section or party for penalty.
Section 147 has several sub-sections and students blur them.
Fix: Company and officers in default: section 147(1). Cost auditor in default: section 147(2) to (4). Both flow from section 148(8).
Saying the Government's review ends the process once CRA-4 is filed.
Students ignore section 148(7).
Fix: The Central Government may call for further information, and the company must furnish it within the time specified.

Worked examples

Example 1

Alfa Chemicals Ltd is covered by cost audit for the financial year 2026-27, ending 31 March 2027. The cost auditor, Mr. Rao, wants to submit the report to the Board. By what date must he do so? The company receives a copy of the report on 12 September 2027. By what date must it furnish the report to the Central Government?

Show the solution

Clock 1: the auditor's period is 180 days from the end of the financial year, 31 March 2027. This 180-day period comes from the Companies (Cost Records and Audit) Rules, not from the text of section 148.
Count the days: April 30, May 31, June 30, July 31, August 31 gives 153 days up to 31 August 2027.
Remaining days: 180 − 153 = 27. So the date is 27 September 2027.
Clock 2: thirty days from receipt of the copy on 12 September 2027, as section 148(6) provides. September has 30 days, so 12 September + 30 days = 12 October 2027.
Form and mode: Form CRA-4, in XBRL mode, with the prescribed fee, as per the Rules.

Answer: Under the Rules, Mr. Rao must submit the report to the Board by 27 September 2027. The company must furnish it to the Central Government in Form CRA-4 by 12 October 2027, under section 148(6).

Example 2

Beta Steels Ltd received a copy of the cost audit report on 20 August 2027. The report contains one qualification on inventory valuation. The company filed Form CRA-4 on 25 September 2027 without any explanation. Advise the company.

Show the solution

Section 148(6) gives thirty days from the date of receipt of a copy of the report. The company received the copy on 20 August 2027.
Count: 20 August + 11 days = 31 August; plus 19 more days = 19 September 2027. That is 30 days in all. So the last date was 19 September 2027.
The filing on 25 September 2027 is after the due date, so the company has defaulted on the time limit.
The report has a qualification. Section 148(6) requires the report to be furnished along with full information and explanation on every reservation or qualification. The filing carried no explanation, so it is also incomplete.
Consequence: under section 148(8), the company and every officer of the company who is in default are punishable as provided in section 147(1).
Further, the Central Government may call for more information under section 148(7), and the company must furnish it within the time specified.

Answer: The company missed the 19 September 2027 deadline and also omitted the explanation on the qualification. Both are defaults under section 148(6). Under section 148(8)(a), the company and every officer in default are punishable as provided in section 147(1).

Exam tips

Write the party for every step: auditor to Board, company to Central Government. This alone earns marks in short answers.
In date problems, show the day count month by month. A correct method earns marks even if you slip on arithmetic.
Quote section 148(6) and section 148(8) by number. Give section 147 sub-sections only as the text states them.
Do not state penalty amounts. Describe who is punishable and under which sub-section.
In a case scenario, check first whether the report has a qualification. Questions often hide this fact to test the explanation requirement.

Practice questions from Preparation and Filing of Cost Audit Report

Submission, Filing and Timelines of Cost Audit Report: frequently asked questions

What is the due date for filing the cost audit report in CRA-4?

The company must furnish the report to the Central Government within thirty days from the date it receives a copy of the cost audit report, as per section 148(6). The filing is made in Form CRA-4 under the Rules. The date depends on when the company receives the copy.

Who files Form CRA-4, the cost auditor or the company?

The company files it. The cost auditor only submits the report to the Board of Directors under section 148(5). The duty to furnish the report to the Central Government rests on the company.

Is the cost audit report filed in XBRL?

Yes. Under the Companies (Cost Records and Audit) Rules, the company files the report in Form CRA-4 using XBRL mode on the MCA portal, with the prescribed fee. For your exam, write the form name, the mode and the thirty-day limit together.

What is the penalty for default in filing the cost audit report?

Section 148(8) applies. The company and every officer in default are punishable as provided in section 147(1). A cost auditor who is in default is punishable as provided in section 147(2) to (4).

How long must the cost auditor keep the audit file?

Para 6.16 of the application guidance to SCA 102 says the final audit file must be assembled within a reasonable time after the audit is completed. After that, the auditor should not delete or discard audit documentation of any nature before the end of its retention period.