CMA Final · Cost and Management Audit · Cost Auditor
A company receives a copy of the cost audit report that contains a qualification. Under section 148, what must the company do, and how does the Central Government respond?
The company must furnish the report to the Central Government within thirty days of receiving a copy, with full information and explanation on every reservation or qualification. If still not satisfied, the Government may call for further information, which the company must supply within the specified time.
- AFurnish the report within thirty days with full information and explanation on every reservation or qualification; the Government may call for further information if it considers it necessaryCorrect
- BFurnish the report within ninety days with a summary of qualifications; the Government must then close the matter
- CFile the report only if the qualification relates to turnover; the Government may not seek further information
- DFurnish the report to the Registrar within thirty days without any explanation; the Government may only prosecute the cost auditor
Explanation
Section 148(6) requires the company to furnish the report within thirty days of receiving a copy, with full information and explanation on every reservation or qualification. Under section 148(7) the Government may call for further information, to be furnished within the time it specifies. The other options alter the period, scope or Government powers.
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