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CMA Final · Cost and Management Audit · Cost Auditor

A company receives the cost audit report prepared under a Central Government direction, and the report contains reservations. Which course matches Section 148?

The company must furnish the cost audit report to the Central Government within thirty days from receipt of a copy, along with full information and explanation on every reservation or qualification in it. The duty is the company's, not the cost auditor's.

  1. AFile the report with the Central Government within thirty days of receipt, with full information and explanation on every reservation or qualificationCorrect
  2. BFile the report within ninety days of the financial year end with explanations only for material reservations
  3. CThe cost auditor files the report directly with the Central Government within thirty days
  4. DPlace the report before members, with no filing with the Central Government

Explanation

Section 148(6) requires the company, within thirty days from receipt of a copy of the report, to furnish the Central Government the report along with full information and explanation on every reservation or qualification. The duty rests on the company, not the auditor, and covers every reservation, not just material ones.

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