Sections 29A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter VIIA creates the Quality Review Board, a body set up by the Central Government to review the quality of services given by members of the Institute, including cost audit services. The 2022 Amendment Act added a function that lets the Board pass cases of non-compliance to the Disciplinary Directorate. The Act was called the Cost and Works Accountants Act, 1959 until 10 May 2022.
The Central Government constitutes the Quality Review Board by notification: a Chairperson and four other members, persons of eminence in law, economics, business, finance or accountancy, two nominated by the Council and two by the Central Government. It recommends, reviews and guides on the quality of members' services, including cost audit services, and, since 2022, forwards non-compliance cases to the Disciplinary Directorate for examination. Its expenditure is borne by the Council.
How this article reads the Act
This article follows the Act as printed by the Institute (as amended in 2011), read with the 2022 Amendment Act to the extent brought into force by S.O. 2184(E) dated 10 May 2022. Section 67 of that Act, which inserts clause (d) in section 29B, is in force. Later amendments and notifications should be checked.
Section 29A: establishment of the Board
Section 29A(1). The Central Government shall, by notification, constitute a Quality Review Board consisting of a Chairperson and four other members.
Section 29A(2). The Chairperson and members are appointed from among persons of eminence having experience in the field of law, economics, business, finance or accountancy.
Section 29A(3). Two members of the Board are nominated by the Council and the other two by the Central Government.
The definition of "Board" in section 2(1)(aaa) points to this section. Note that the Board is constituted by the Central Government, not by the Council. The Council nominates two of the four members but does not appoint the Board itself. See our article on section 2.
Section 29B: functions of the Board
The Board performs the following functions:
| Clause | Function |
|---|---|
| (a) | To make recommendations to the Council with regard to the quality of services provided by the members of the Institute |
| (b) | To review the quality of services provided by the members of the Institute, including cost audit services |
| (c) | To guide the members to improve the quality of services and adherence to the various statutory and other regulatory requirements |
| (d) | To forward cases of non-compliance with various statutory and regulatory requirements by members of the Institute or firms, noticed by it during its review, to the Disciplinary Directorate for its examination (inserted 2022; in force) |
Clause (d) in context. Clause (a) sends the Board's recommendations to the Council; clause (d) is a direct referral to the Disciplinary Directorate. It does not say the Board decides anything about misconduct; the case goes to the Disciplinary Directorate for its examination. The examination itself is governed by section 21, whose in-force text is the 2006 version, with the 2022 version not in force; see our article on section 21. The word "firms" in clause (d) refers to the new concept of firms; while Chapter IVA is not in force, firms remain outside the Register, so a reader should check how the clause operates in practice.
The Council has a related duty. Section 15(2)(k) requires it to consider the Board's recommendations under section 29B(a) and include the details of action taken in its annual report; see our article on sections 15 to 15B. Section 15(2)(j) requires the Council to enable the functioning of the Board.
Cost audit. Clause (b) names cost audit services expressly. The rules for appointing a cost auditor and filing the cost audit report under the Companies Act, 2013 are explained in our posts on section 148 of the Companies Act, 2013 and cost audit applicability and compliance. The Board's review under this Act is of the quality of the members' services; it is not a substitute for those rules.
Section 29C: procedure of the Board
The Board meets at such time and place and follows in its meetings such procedure as may be specified. "Specified" means specified by rules made by the Central Government, so the meeting procedure is in the rules, not in the Act.
Section 29D: terms of service and expenditure
- 29D(1): the terms and conditions of service of the Chairperson and members of the Board, and their allowances, are as may be specified.
- 29D(2): the expenditure of the Board is borne by the Council.
The Council therefore pays for a Board it does not itself constitute.
A short example
The Quality Review Board reviews a sample of cost audit files prepared by Menon and Co., a firm of cost accountants. It notes that the firm's cost audit report on one company omitted required disclosures. Under clause (b) it reviews the quality of services; under clause (c) it guides the firm on improving adherence to statutory requirements. If the Board notices non-compliance with a statutory or regulatory requirement, clause (d) lets it forward the case to the Disciplinary Directorate for examination. The Directorate then proceeds under section 21 and forms its prima facie opinion; the Board does not itself impose any penalty.
A member or firm preparing for a review of its working papers and reports can use compliance advisory support.
The same rule for chartered accountants
See Sections 28A to 28D of the Chartered Accountants Act, 1949. The cost accountants' Board expressly includes cost audit services in clause (b).
Need help with quality review?
If your practice wants to prepare for a quality review, tighten its documentation or respond to a referral, our compliance advisory team can help you map the Board's functions to your engagements.
Key takeaways
- The Central Government constitutes the Board: a Chairperson and four members, two nominated by the Council and two by the Government.
- The Board recommends, reviews and guides on service quality, including cost audit services.
- Since 2022, clause (d) lets it forward non-compliance by members or firms to the Disciplinary Directorate.
- Procedure and members' terms are specified; the Council bears the Board's expenditure.
- The Board does not itself penalise members.
Read next
- Sections 28 and 29: offences by companies and sanction to prosecute
- Sections 30 to 32: dissolution of the old company
- Section 21: the Disciplinary Directorate
Disclaimer: Based on the Cost and Works Accountants Act, 1959 (now the Cost Accountants Act, 1959) as printed by the Institute of Cost Accountants of India (as amended in 2011), read with the Chartered Accountants, the Cost and Works Accountants and the Company Secretaries (Amendment) Act, 2022 to the extent brought into force by S.O. 2184(E) dated 10 May 2022, as consulted on 3 October 2026. Regulations, rules, later amendments and commencement notifications should be checked. This article is general information, not legal advice; check the official text before acting.