CMA Intermediate · Corporate Accounting and Auditing · Cost Audit
Under the Companies Act, 2013, to whom does 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. The proviso to section 148(5) says so. The company later sends a copy to the Central Government, so the auditor does not report directly to the Government.
- AThe Central Government directly
- BThe Board of Directors of the companyCorrect
- CThe members in general meeting
- 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, not the cost auditor, then furnishes the report to the Central Government under section 148(6).
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