CMA Intermediate · Corporate Accounting and Auditing · Cost Audit
Which of the following is correctly stated under Section 148 of the Companies Act, 2013?
Cost audit is conducted in addition to the audit under Section 143. Section 148(4) says so, so it does not replace the statutory audit. It applies only to companies the Central Government directs under Section 148(2).
- ACost audit replaces the audit conducted under Section 143
- BCost audit is conducted in addition to the audit conducted under Section 143Correct
- CCost audit applies to every company regardless of the Central Government's order
- DCost auditing standards are issued by the Central Government without any Institute role
Explanation
Section 148(4) states that an audit under this section is in addition to the audit under Section 143. Cost audit arises only where the Central Government so directs under Section 148(2), and the cost auditing standards are issued by the Institute with Central Government approval.
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