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CMA Final · Cost and Management Audit · Basics of 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 report to the Board of Directors of the company. The company, not the auditor, then furnishes a copy to the Central Government within thirty days of receiving it, along with explanations for any reservation or qualification.

  1. AThe Central Government directly, within thirty days of completing the audit
  2. BThe members of the company at the annual general meeting
  3. CThe Board of Directors of the companyCorrect
  4. DThe statutory auditor appointed under section 139

Explanation

The proviso to section 148(5) states that the report on the audit of cost records shall be submitted by the cost accountant to the Board of Directors. It is the company that furnishes a copy to the Central Government within thirty days of receiving it under section 148(6). Submitting directly to the Central Government is therefore wrong.

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