CMA Final · Cost and Management Audit · Cost Auditor
A company is liable to a cost audit under Section 148. Its cost auditor defaults in complying with the section. How is the cost auditor punishable under Section 148(8)?
A defaulting cost auditor is punishable in the manner provided in sub-sections (2) to (4) of section 147, under section 148(8)(b). Sub-section (1) of section 147 applies instead to the company and its officers in default.
- AIn the manner provided in sub-sections (2) to (4) of section 147Correct
- BIn the manner provided in sub-section (1) of section 147
- COnly by removal from appointment by the Board
- DUnder section 143 as statutory auditor
Explanation
Section 148(8)(b) makes the defaulting cost auditor punishable under section 147(2) to (4). Sub-section (1) of section 147 applies to the company and its officers in default under clause (a), which is the distractor mixing up the two parties.
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