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Under section 148(3) of the Companies Act, 2013, which professional may be appointed to audit the records that a company keeps under section 148(1)?

Question and options

Under section 148(3) of the Companies Act, 2013, which professional may be appointed to audit the records that a company keeps under section 148(1)?

  1. The company's statutory auditor appointed under section 139

  2. A company secretary holding a certificate of practice

  3. A cost accountant holding a certificate of practice

  4. A chartered accountant holding a certificate of practice

Answer and explanation

Correct answer: C - A cost accountant holding a certificate of practice

Section 148(3) of the Companies Act, 2013 requires the cost audit to be conducted by a cost accountant, defined in section 2(28) as a cost accountant under the Cost and Works Accountants Act, 1959 holding a valid certificate of practice. Its proviso bars the company's section 139 auditor, and a chartered accountant, though eligible for the statutory audit, is not eligible for the cost audit.

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