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CMA Intermediate · Corporate Accounting and Auditing · Cost Audit

Under Section 148 of the Companies Act, 2013, 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. This is stated in the proviso to Section 148(5). The company, not the cost auditor, later sends the report to the Central Government.

  1. AThe Registrar of Companies
  2. BThe Board of Directors of the companyCorrect
  3. CThe members in general meeting
  4. DThe statutory auditor of the company

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 then furnishes a copy to the Central Government under Section 148(6). Submission to the Registrar or members is not what the section provides.

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