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CMA Intermediate · Corporate Accounting and Auditing · Cost Audit

Under section 148, to whom does the cost accountant submit the report on the audit of cost records, and within what time must the company furnish a copy to the Central Government?

The cost accountant submits the cost audit report to the Board of Directors. The company must then furnish the Central Government with the report, with full explanation of every reservation or qualification, within thirty days of receiving the copy.

  1. ATo the members; within 60 days of the report
  2. BTo the Board of Directors; within thirty days from the date of receipt of a copy of the reportCorrect
  3. CTo the Registrar; within thirty days of the financial year end
  4. DTo the Central Government directly; within 90 days

Explanation

The proviso to section 148(5) requires the report to be submitted to the Board of Directors. Section 148(6) requires the company, within thirty days from receipt of the copy of the report, to furnish the Central Government the report with full information and explanation on every reservation or qualification.

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