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CMA Final · Cost and Management Audit · Companies (Cost Records and Audit) Rules, 2014

According to the Explanation to section 148(3), the expression cost auditing standards means standards issued by which body?

Cost auditing standards are those issued by the Institute of Cost Accountants of India with the approval of the Central Government, as stated in the Explanation to section 148(3). The cost auditor must comply with them under the second proviso to that sub-section.

  1. AThe Institute of Cost Accountants of India, with the approval of the Central GovernmentCorrect
  2. BThe Institute of Chartered Accountants of India, with the approval of the National Financial Reporting Authority
  3. CThe Securities and Exchange Board of India, with the approval of the Board of Directors
  4. DThe Ministry of Corporate Affairs, with the approval of the Institute of Cost Accountants of India

Explanation

The Explanation to section 148(3) defines cost auditing standards as standards issued by the Institute of Cost Accountants of India, constituted under the Cost and Works Accountants Act, 1959, with the approval of the Central Government. The other options name the wrong issuing body or approving authority.

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