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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 prepared under a direction of the Central Government under Section 148(2). Within what period must it furnish the report to the Central Government, along 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 the date of receipt of a copy of the report. It must include full information and explanation on every reservation or qualification contained in it, as Section 148(6) provides.

  1. AThirty days from the date of receipt of the copy of the reportCorrect
  2. BSixty days from the date of receipt of the copy of the report
  3. CThirty days from the end of the financial year
  4. DThirty days from the date of the annual general meeting

Explanation

Section 148(6) requires the company to furnish the report within thirty days from the date of receipt of a copy of it, with full information and explanation on every reservation or qualification. The period runs from receipt, not from year-end or the AGM, and it is thirty days, not sixty.

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