CMA Final · Cost and Management Audit · Cost Auditor
Which statement about the audit conducted under Section 148 is correct as per the Companies Act, 2013?
The cost audit under Section 148 is in addition to the audit conducted under Section 143. It does not replace the statutory audit, and it is not triggered by any qualification in the statutory auditor's report.
- AIt replaces the audit conducted under Section 143 for covered companies
- BIt is in addition to the audit conducted under Section 143Correct
- CIt is required only if the statutory auditor qualifies the report
- DIt is conducted by the statutory auditor as an extended scope
Explanation
Section 148(4) provides that an audit under this section shall be in addition to the audit under Section 143. It therefore does not replace it and is not linked to qualification of the statutory report. The statutory auditor is also barred from doing it.
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