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CMA Final · Cost and Management Audit · Companies (Cost Records and Audit) Rules, 2014

Under section 148 of the Companies Act, 2013, who has the power to appoint the cost auditor of a company that is required to get its cost records audited?

The Board of Directors appoints the cost auditor under section 148(3). The Central Government merely orders the audit, the statutory auditor is barred from this appointment, and the Institute issues standards. Remuneration is determined by the members in the prescribed manner.

  1. AThe Board of DirectorsCorrect
  2. BThe Central Government
  3. CThe statutory auditor appointed under section 139
  4. DThe Institute of Cost Accountants of India

Explanation

Section 148(3) says the cost audit is conducted by a cost accountant who is appointed by the Board. The Central Government only directs that the audit be done. The statutory auditor cannot be appointed as cost auditor, and the Institute only issues the standards.

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