CMA Final · Cost and Management Audit · Cost Auditor
Which of the following correctly describes the relationship between the cost audit under Section 148 and the audit under Section 143?
The cost audit under section 148 is in addition to the statutory audit under section 143, as section 148(4) states. It does not replace, merge with, or make optional the statutory audit of the company.
- AThe cost audit is in addition to the audit conducted under section 143Correct
- BThe cost audit replaces the section 143 audit for covered companies
- CThe section 143 audit is optional once a cost audit is done
- DThe cost audit is merged into the statutory audit report
Explanation
Section 148(4) states that an audit conducted under section 148 shall be in addition to the audit under section 143. It neither replaces nor merges with the statutory audit, so the other options are wrong.
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