CMA Final · Cost and Management Audit · Cost Auditor
Under the Companies Act, 2013, to whom must 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 Act places this duty in section 148(5). The company, not the cost auditor, later furnishes the report to the Central Government within thirty days of receiving a copy.
- AThe Registrar of Companies directly
- BThe Board of Directors of the companyCorrect
- CThe general meeting of shareholders
- DThe statutory auditor of the company
Explanation
The proviso to section 148(5) says the report on audit of cost records shall be submitted by the cost accountant to the Board of Directors. The company then furnishes the report to the Central Government within thirty days of receiving a copy, so direct submission to the ROC is wrong.
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