CMA Final · Cost and Management Audit · Cost Auditor
Section 148 of the Companies Act, 2013 bars a particular person from being appointed to conduct the audit of cost records. Who is that?
A person appointed under section 139 as the company's auditor cannot be appointed to conduct the cost audit. Section 148(3) first proviso prohibits this, so the statutory auditor and cost auditor must be different. A cost accountant appointed by the Board is the proper route.
- AA cost accountant who is a member of the Institute of Cost Accountants of India
- BA person appointed under section 139 as an auditor of the companyCorrect
- CA cost accountant appointed by the Board
- DA cost accountant whose remuneration is determined by the members
Explanation
The first proviso to section 148(3) states that no person appointed under section 139 as auditor of the company shall be appointed for conducting the audit of cost records. The other three options describe the normal appointment process, which is permitted.
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