Every company has to conduct an audit of cost accounts under section 233B (2) of the
Companies Act, 1956 had to file an application to the Central Government for the appointment of
a cost auditor by filing the eform 23C with the Registrar of Companies about the appointment of the
- eForm 23C is pursuant to Section 209(1)(d) of the Companies Act, 1956.
Form 23C According to the Companies Act, 1956, the Central Government could issue an order directing the audit
of cost accounts of a company by an auditor who is a cost accountant within the meaning of the Cost
and Works Accountants Act, 1959. It could issue an order for an audit of cost accounts where it is of the
opinion that it is necessary for a company to conduct a cost audit of its books of account as per
Section 209(1)(d) of the Companies Act 1956.
The company’s Board of Directors had to appoint a cost auditor as per the Companies Act, 1956 with
the previous approval of the Central Government and file form 23C to the Central Government for
the appointment of the cost auditor with the ROC.