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CMA Intermediate · Corporate Accounting and Auditing · Statutory Audit under the Companies Act, 2013

The cost auditor of Bharat Alloys Ltd completes the audit of cost records and issues the report containing a qualification. To whom must the cost accountant submit the report, and what must the company do next?

The cost accountant submits the report to the Board of Directors. Within thirty days of receiving a copy, the company must furnish it to the Central Government with full information and explanation on every reservation or qualification in it.

  1. ASubmit to the Central Government; the company then files it with the members within 30 days
  2. BSubmit to the Board of Directors; the company furnishes it to the Central Government within 30 days of receipt with full information and explanation on every reservation or qualificationCorrect
  3. CSubmit to the statutory auditor; the company files it with the Registrar within 60 days
  4. DSubmit to the members at the general meeting; the company need not furnish it to the Central Government

Explanation

The proviso to section 148(5) requires the cost audit report to be submitted to the Board. Under section 148(6) the company must, within thirty days of receiving a copy, furnish the Central Government the report with full information and explanation on every reservation or qualification.

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