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CMA Intermediate · Corporate Accounting and Auditing · Statutory Audit under the Companies Act, 2013

Which statement about the qualifications and disqualifications of a cost auditor appointed under section 148 is correct?

The qualifications, disqualifications, rights, duties and obligations that apply to auditors under the Chapter apply to a cost auditor so far as they may be applicable, under section 148(5). It is not limited to rights alone or disqualifications alone.

  1. AThey never apply because a cost auditor is not an auditor under the Act
  2. BThe qualifications, disqualifications, rights, duties and obligations applicable to auditors under the Chapter apply, so far as may be applicableCorrect
  3. COnly the rights apply, not the disqualifications
  4. DOnly the disqualifications apply, not the duties

Explanation

Section 148(5) applies the qualifications, disqualifications, rights, duties and obligations of auditors under the Chapter to the cost auditor so far as may be applicable. Selecting only rights or only disqualifications misstates it.

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