CMA Final · Cost and Management Audit · Cost Auditor
Which statement about the appointment of a cost auditor under Section 148 is correct as per the Companies Act, 2013?
A person appointed as the company's statutory auditor under section 139 cannot be appointed to conduct the cost audit. Section 148(3) provides the Board appoints the cost accountant, with remuneration determined by members in the prescribed manner.
- AA person appointed under section 139 as auditor of the company cannot be appointed to audit cost recordsCorrect
- BThe statutory auditor may also be the cost auditor if the Board approves
- CThe cost auditor is appointed by the Central Government directly
- DThe cost auditor's remuneration is fixed by the Board without reference to members
Explanation
The first proviso to section 148(3) bars a person appointed under section 139 as the company's auditor from being appointed to audit cost records. Appointment is by the Board, and remuneration is determined by the members in the prescribed manner, so the other options are wrong.
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