Cost Audit › CRA-3
CRA-3: The Cost Auditor's Report to Your Board
CRA-3 is where the cost audit actually gets documented — auditor observations, reconciliation and, if any, qualifications. Here is what it covers and when it's due.
Overview
What Is Form CRA-3?
Form CRA-3 is the prescribed format for the cost audit report itself. Once appointed via CRA-2, the cost auditor examines the company's cost records and prepares this report, submitting it to the board of directors within 180 days from the end of the relevant financial year. It's the auditor's formal output — separate from CRA-4, which is how the company later files that report with the MCA.
Who Needs This
Who This Applies To
Companies under cost audit
Appointed cost auditors
Audit committees
Foreign companies under audit
CRA-3 at a Glance
What CRA-3 Covers and When It's Due
Report Contents
Cost auditor's observations, product-wise costing and reconciliation statement
Submission Deadline
Measured from the end of the financial year being audited
CRA-3 vs CRA-4
CRA-3 is the auditor's report to the board — an internal document at this stage. CRA-4 is the company's subsequent filing of that same report with the MCA, due within 30 days of receiving CRA-3.
Why It Matters
Why a Properly Prepared CRA-3 Matters
Meets the 180-day deadline
Structured drafting keeps report delivery inside the statutory window.
Clean handoff to CRA-4
A well-prepared CRA-3 makes the subsequent MCA filing straightforward.
Fewer surprises
Early records review reduces the risk of late-stage qualifications.
Real cost insight
The reconciliation and product costing sections often reveal margin issues.
Board and audit committee ready
Report format matches what governance reviewers expect to see.
Predictable timeline
A managed process avoids a last-minute scramble before year-end plus 180 days.
How It Works
How We Prepare Your CRA-3 Report
From records review to a board-submitted CRA-3.
Start My CRA-3Cost records verification
CRA-1 format records are checked for completeness before drafting begins.
Product/service-wise costing
Costs are allocated and analysed for each product or service under audit.
Reconciliation statement
Cost accounts are reconciled with the audited financial statements.
Draft review with management
A draft CRA-3 is shared for factual review before finalisation.
Submission to the board
The final signed report is submitted within the 180-day deadline.
Before You Start
Documents Needed for CRA-3 Preparation
Audited financial statements
Cost records (CRA-1 format)
Production and inventory data
Purchase and sales data
Sector Coverage
Industries We Serve
Why SSCOIndia
Why Choose SSCOIndia for CRA-3
ICMAI Cost Accountants
Written compliance position
Fast, no-obligation review
PAN India, foreign entities too
Questions
Frequently Asked Questions
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