CMA Final · Cost and Management Audit · Cost Auditor
As per Section 148(3) of the Companies Act, 2013, the cost auditor is appointed by whom, and how is remuneration fixed?
The cost auditor is appointed by the Board of Directors, while the remuneration is determined by the members in the manner prescribed, as stated in Section 148(3) of the Companies Act, 2013.
- AAppointed by the Board; remuneration determined by the members in the prescribed mannerCorrect
- BAppointed by the members; remuneration fixed by the Board
- CAppointed by the Central Government; remuneration fixed by the Institute
- DAppointed by the Audit Committee alone; remuneration fixed by the cost auditor
Explanation
Section 148(3) states the cost accountant shall be appointed by the Board on such remuneration as may be determined by the members in the manner prescribed. The reverse allocation in the second option is therefore wrong, and neither the Central Government nor the Institute appoints the auditor.
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