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CMA Final · Cost and Management Audit · Cost Auditor

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 on the audit of cost records to the Board of Directors of the company, as provided in the proviso to Section 148(5). The company then furnishes the report to the Central Government within thirty days of receiving it.

  1. AThe Board of Directors of the companyCorrect
  2. BThe members in general meeting
  3. CThe Registrar of Companies directly
  4. DThe Institute of Cost Accountants of India

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 of the company. Submission to members or the Registrar is not what the section provides. The company, not the auditor, later furnishes the report to the Central Government under sub-section (6).

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