CA Inter P2 · Chapter 9 · Question 10 of 11
Under section 148(3), which of the following persons cannot be appointed to conduct the cost audit of a company?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The statutory auditor of the company appointed under section 139
Explanation
Section 148(3) requires the cost audit to be conducted by a cost accountant appointed by the Board. It expressly provides that no person appointed under section 139 as the company's auditor shall be appointed to audit its cost records. This keeps the financial and cost audits independent.
More Audit and Auditors MCQs
- Q1Under section 139(1), the auditor appointed at the first annual general meeting holds office:
- Q2An audit firm has been the auditor of Vertex Ltd, a listed company, for two consecutive terms of five years each. Under section 139(2)…
- Q3Fern Ltd is a non-government company. Under section 139(6), its first auditor must be appointed by the Board within thirty days of…
- Q4The auditor of Willow Ltd (not audited by the CAG) resigned mid-term. Under section 139(8), the casual vacancy:
- Q5Under section 140(1), an auditor appointed under section 139 may be removed from office before the expiry of his term only by: