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CMA Intermediate · Corporate Accounting and Auditing · Cost Audit

Which statement about the application of the provisions on auditors to a cost auditor appointed under section 148 is correct?

The qualifications, disqualifications, rights, duties and obligations applicable to auditors under the Chapter apply to the cost auditor so far as applicable. The company must also give the cost auditor all assistance and facilities for auditing the cost records, as section 148(5) provides.

  1. ANo provisions on auditors apply to a cost auditor
  2. BQualifications, disqualifications, rights, duties and obligations of auditors apply so far as may be applicable, and the company must give all assistance and facilitiesCorrect
  3. COnly the penalty provisions of section 147 apply, and the company has no duty to assist
  4. DOnly rights apply; disqualifications and duties do not

Explanation

Section 148(5) applies the qualifications, disqualifications, rights, duties and obligations of auditors under the Chapter to the cost auditor so far as applicable. It also makes it the company's duty to give all assistance and facilities for auditing the cost records.

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