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CMA Intermediate · Corporate Accounting and Auditing · Cost Audit

A company receives a copy of the cost audit report prepared under a direction under Section 148(2) on 12 March. By which date must it furnish the report, with full information and explanation on every reservation or qualification, to the Central Government?

The company must furnish the report within thirty days of receiving the copy, so by 11 April. Section 148(6) sets this period and requires full information and explanation on every reservation or qualification in the report.

  1. A11 April, being thirty days from receiptCorrect
  2. B26 March, being fifteen days from receipt
  3. C11 May, being sixty days from receipt
  4. D31 March, being the financial year end

Explanation

Section 148(6) requires the company to furnish the report within thirty days from the date of receipt of a copy. From 12 March, 19 days remain in March, so 30 days ends on 11 April. Fifteen or sixty days are not in the section.

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