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Under the Companies (Cost Records and Audit) Rules, 2014, to whom must a cost auditor first forward the signed cost audit report?

Question and options

Under the Companies (Cost Records and Audit) Rules, 2014, to whom must a cost auditor first forward the signed cost audit report?

  1. The Central Government

  2. The board of directors of the company

  3. The members at the next annual general meeting

  4. The company's statutory auditor

Answer and explanation

Correct answer: B - The board of directors of the company

Rule 6(5) of the Companies (Cost Records and Audit) Rules, 2014 requires the cost auditor to forward the signed report to the board of directors within 180 days from the close of the financial year. It is the company, not the cost auditor, that then furnishes the report to the Central Government within 30 days of receiving it, under section 148(6) and rule 6(6).

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