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

Under section 148 as reproduced, to whom must the cost auditor submit the report on the audit of cost records?

The cost auditor submits the cost audit report to the Board of Directors of the company. The company then sends a copy to the Central Government within thirty days of receiving it, with explanations on every reservation or qualification.

  1. AThe Central Government directly
  2. BThe Board of Directors of the companyCorrect
  3. CThe Audit Committee only
  4. DThe general meeting of members

Explanation

The proviso to section 148(5) says the report on the audit of cost records shall be submitted by the cost accountant to the Board of Directors. The company, not the cost auditor, furnishes the report to the Central Government within thirty days of receiving it, as section 148(6) provides.

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