CS Professional · Compliance Management, Audit and Due Diligence · Concepts of Various Audits
Bharat Polymers Ltd has a cost auditor whose report for the year contains an adverse remark. The company secretary is preparing the compliance steps. Which course is correct?
The cost auditor submits the report to the Board, whose own report must explain any reservation or adverse remark. The company then files the cost audit report with the Central Government in the prescribed form within 30 days of receiving it. Direct filing by the auditor or SEBI filing is incorrect.
- AThe cost auditor sends the report to the Board; the Board's report must explain every reservation or qualification, and the company files the report with the Central Government in the prescribed form within 30 days of receiving itCorrect
- BThe cost auditor files the report directly with the Registrar within 60 days and the Board need not comment
- CThe report goes to the shareholders for approval and the Board has no duty to explain any remark
- DThe company files the report with SEBI within 90 days of the financial year end
Explanation
The cost auditor submits the report to the Board. The Board's report must give explanations or comments on any reservation, qualification or adverse remark, and the company furnishes the cost audit report to the Central Government within 30 days from the date of receipt, in the prescribed form. The other options misstate the recipient, period or duty.
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