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

A company receives a copy of the cost audit report on 10 March, prepared under a direction of the Central Government under section 148(2). By what date must it furnish the report to the Central Government, with full information and explanation on every reservation or qualification?

The company must furnish the cost audit report to the Central Government within thirty days from receiving a copy, together with full information and explanation on every reservation or qualification. From 10 March this ends on 9 April.

  1. AWithin thirty days, that is by 9 AprilCorrect
  2. BWithin sixty days, that is by 9 May
  3. CWithin fifteen days, that is by 25 March
  4. DWithin ninety days, that is by 8 June

Explanation

Section 148(6) requires the company to furnish the report within thirty days from the date of receipt of a copy of the report. Thirty days from 10 March (31-day month) ends on 9 April. Sixty or ninety days are not the statutory period.

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