Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Cost and Management Audit Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email Area Pin Code 1. Which company is NOT required to maintain cost records as per the Companies Act, 2013? Manufacturing companies specified under cost audit rules Companies engaged in trading activities Companies producing steel and cement Companies manufacturing specified pharmaceutical products None 2. Cost records should be maintained for how many years as per statutory requirements? 3 years 5 years 8 years 10 years None 3. Which regulatory body specifies the industry sectors for cost audit applicability? SEBI MCA ICAI RBI None 4. Which cost records maintenance rule is applicable to companies under cost audit? Companies (Cost Records and Audit) Rules, 2014 Companies (Audit & Auditors) Rules, 2015 Companies (Statutory Audit) Rules, 2013 Companies (Internal Audit) Rules, 2018 None 5. Which of the following companies are required to conduct cost audits? Companies with net worth of ₹10 crore or more Companies having turnover exceeding ₹100 crore in regulated sectors Companies engaged in financial services Companies listed on the stock exchange None 6. Which of the following is NOT a responsibility of a Cost Auditor? Verify cost records Ensure statutory compliance Certify financial statements Suggest cost reduction measures None 7. Which form is used to file the Cost Audit Report with MCA? Form CRA-1 Form CRA-3 Form CRA-4 Form CRA-14 None 8. A cost auditor is required to report frauds involving amounts exceeding: ₹10 lakh ₹50 lakh ₹1 crore ₹5 crore None 9. Which of the following sections of the Companies Act, 2013 mandates cost audit? Section 139 Section 144 Section 148 Section 233 None 10. Cost audit reports should be submitted within how many days from the financial year-end? 90 days 120 days 180 days 150 days None 11. CAS-1 deals with which of the following? Depreciation Cost Classification of Cost Employee Cost Research & Development Cost None 12. Which Cost Accounting Standard covers Overheads? CAS-2 CAS-3 CAS-5 CAS-7 None 13. Which CAS provides guidelines on Direct Material Cost? CAS-1 CAS-2 CAS-3 CAS-6 None 14. CAS-19 deals with which cost element? Joint Costs Packaging Costs Research & Development Costs Infrastructure Costs None 15. Which of the following is NOT a Cost Accounting Standard? CAS-10: Repairs & Maintenance Cost CAS-12: Administrative Overheads CAS-16: Pollution Control Cost CAS-25: Blockchain Accounting None 16. Which of the following is NOT a benefit of cost audit? Identifying cost-saving opportunities Ensuring statutory compliance Increasing financial statement accuracy Improving cost efficiency None 17. A limitation of cost audit is: It is legally mandated It involves subjective judgments It improves cost control It helps in regulatory compliance None 18. Which key aspect is NOT covered in Management Audit? Human Resource Efficiency Organizational Structure Direct Tax Compliance Decision-making Effectiveness None 19. One of the primary differences between Cost Audit and Financial Audit is: Cost Audit focuses on past financial transactions Financial Audit aims at cost efficiency Cost Audit is concerned with operational efficiency Financial Audit ensures statutory compliance None 20. Which of the following is NOT a purpose of Management Audit? Assessing organizational efficiency Analyzing financial statements for investors Evaluating decision-making processes Enhancing internal controls None 21. Who appoints the cost auditor in a company? Shareholders Board of Directors Audit Committee Government Authority None 22. A cost auditor must be a member of: ICAI ICSI ICMAI SEBI None 23. Which of the following industries requires cost audit? Banking Telecommunications IT Services Film Industry None 24. Which of the following is NOT a category of Cost Audit? Propriety Audit Efficiency Audit Performance Audit Legal Compliance Audit None 25. A cost audit helps in: Reducing tax liability Identifying financial fraud Improving pricing decisions Managing fixed asset investments None 26. Which of the following is NOT a step in the cost audit process? Appointment of the cost auditor Verification of cost records Valuation of financial assets Submission of cost audit report None 27. The first step in a cost audit is: Issuance of cost audit report Collection of audit evidence Appointment of cost auditor Analysis of financial reports None 28. Which type of cost audit is conducted to ensure the optimal utilization of resources? Statutory Cost Audit Efficiency Audit Propriety Audit Financial Audit None 29. Which of the following best describes ‘Materiality’ in a cost audit? A minor deviation that can be ignored A significant item that can influence cost decisions A legal requirement to disclose all costs An unnecessary part of cost audit None 30. The primary objective of an operational audit is to: Verify financial transactions Assess compliance with tax laws Improve efficiency and effectiveness Ensure accuracy of cost statements None 31. Which form is used to submit the Cost Audit Report to the government? Form CRA-2 Form CRA-3 Form CRA-4 Form CRA-7 None 32. Which of the following is NOT a part of the Cost Audit Report? Cost Auditor’s Observations Cost Statements Profit & Loss Account Annexures to Cost Audit Report None 33. Cost audit observations should be reported in which section of the cost audit report? Part A Part B Part C Annexure 1 None 34. Which of the following forms is used for the appointment of a cost auditor? CRA-1 CRA-2 CRA-3 CRA-4 None 35. Who is responsible for approving the cost audit report before submission to the MCA? Chief Financial Officer Board of Directors Cost Accountant Internal Auditor None 36. Which section of the Companies Act, 2013 specifies penalties for non-compliance with cost audit requirements? Section 133 Section 144 Section 148 Section 197 None 37. What is the penalty for non-compliance with cost audit regulations under the Companies Act? ₹50,000 to ₹2,00,000 ₹10,000 to ₹50,000 ₹5,00,000 to ₹10,00,000 ₹1,00,000 to ₹5,00,000 None 38. A cost auditor who knowingly provides incorrect audit reports may be penalized with imprisonment for up to: 1 year 3 year 5 year 7 year None 39. In case of a company’s failure to maintain cost records, who can be held liable? Cost Auditor only Board of Directors & CEO Shareholders Government Authorities None 40. If a company fails to submit the Cost Audit Report in the prescribed time, it may face: Monetary fines only Imprisonment of the CFO Disqualification of the cost auditor Both monetary fines and possible legal action None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. Time's upYou cannot switch tabs while taking this quiz!You are not allowed to switch tabs violation has been recorded.you cannot minimize full screen mode!You are not allowed to minimize full screen while taking this quiz, violation has been recorded.Access denied! To begin the quiz, please grant this quiz access to your camera.Time is Up!Time is Up!
