Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Cost Audit and Cost RecordsTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. What is the primary purpose of cost records? To calculate sales price - Control production To ascertain and control costs To determine tax liabilities None 2. Who is responsible for appointing a cost auditor in a company? Board of Directors Shareholders Central Government CFO None 3. What is the primary document guiding cost records and audit? Income Tax Act Companies (Cost Records and Audit) Rules, 2014 Companies Act, 1956 SEBI Regulations None 4. Which entity issues the cost audit report to the company? Tax authorities - Cost Auditor Internal Auditor SEBI None 5. What is the duration for which cost records must be preserved? 3 years 5 years 8 years 10 years None 6. Who reviews and approves the cost audit report? CFO Board of Directors CEO Shareholders None 7. Which of the following is NOT part of a cost audit? Verifying sales invoices Checking compliance with cost accounting standards Evaluating cost control measures Ensuring accurate recording of costs None 8. Which cost is often the primary focus of a cost audit? Direct materials Production cost Marketing expenses Administrative expense None 9. The cost auditor's appointment must be approved by the company's shareholders at the next: Extraordinary General Meeting Annual General Meeting Board Meeting Audit Committee Meeting None 10. The cost auditor submits the cost audit report to the company’s: Chief Financial Officer Board of Directors Internal Auditor HR Department None 11. Which audit report form is used for cost audits? CRA-2 CRA-3 CRA-4 CRA-5 None 12. Which authority mandates Cost Audit? SEBI Central Government RBI State Government None 13. Cost records are primarily required for which type of industries? All industries Banking Specified industries Service industries None 14. Cost records must comply with which standards? IFRS Cost Accounting Standards (CAS) GAAP Ind AS None 15. Which form is used for filing the cost audit report with the government? CRA-2 CRA-3 CRA-4 CRA-5 None 16. The primary purpose of cost audit is to: Detect fraud Monitor profits Ensure compliance with cost accounting principles Manage investments None 17. Which document does the cost auditor review to understand raw material costs? Sales invoices Material requisition slips Tax returns Cash flow statements None 18. Cost audit assists in determining: Product profitability Total revenue Market share Fixed assets None 19. In which year did cost audit become mandatory for certain industries in India? 1965 1973 2014 2018 None 20. Which costs are usually excluded from the cost audit scope? Direct material costs Financial and investment costs Production costs Overheads None 21. Which of the following is not typically verified in a cost audit? Cost ledger Labor cost records Financial ledger Production cost records None 22. The responsibility to implement cost records lies with the: Cost Auditor Company Management Shareholders External Auditor None 23. Cost accounting standards in India are issued by: SEBI - ICMAI ICAI Ministry of Corporate Affairs None 24. Cost audit is primarily concerned with: Verifying sales transactions Checking shareholder dividends Evaluating cost control mechanisms Auditing tax returns None 25. Which of the following is a key benefit of conducting a cost audit? Enhancing tax compliance Improving cost control and efficiency Increasing sales revenue Reducing employee turnover None 26. Which form is used for intimation of the appointment of a cost auditor to the Central Government? CRA-1 CRA-2 CRA-3 CRA-4 None 27. The cost audit report should be submitted to the Board of Directors within how many days from the closure of the financial year? 30 days 60 days 180 days 120 days None 28. Which of the following industries is typically exempt from mandatory cost audit? Cement Pharmaceuticals Information Technology Steel None 29. The primary objective of maintaining cost records is to: Comply with tax regulations Determine product pricing Monitor and control operational efficiency Prepare financial statements None 30. Which document outlines the scope and methodology of a cost audit? Audit Plan Cost Audit Report Engagement Letter Cost Accounting Policy None 31. In cost accounting, 'CAS' stands for: Cost Audit Standards Cost Accounting Standards Corporate Accounting Standards Central Audit Standards None 32. Which of the following is not a component of cost records? Material cost records Labor cost records Overhead cost records Investment portfolio records None 33. The term 'cost audit' refers to: Financial audit of cost statements Systematic examination of cost records and verification of cost accounts Internal audit of financial transactions External audit of tax return None 34. Which section of the Companies Act, 2013 deals with the maintenance of cost records? Section 128 Section 133 Section 148 Section 152 None 35. The cost auditor's report is submitted in which form? CRA-1 CRA-2 CRA-3 CRA-4 None 36. Which body is responsible for issuing Cost Accounting Standards in India? Institute of Chartered Accountants of India (ICAI) Institute of Cost Accountants of India (ICAI) Securities and Exchange Board of India (SEBI) Ministry of Corporate Affairs (MCA) None 37. The primary focus of a cost audit is to: Verify financial statements Assess tax liabilities Evaluate cost control and efficiency Audit sales transactions None 38. Which of the following is a statutory requirement under the Companies Act, 2013? Financial audit Internal audit Cost audit for specified companies Management audit None 39. Cost records are required to be maintained by companies under which section of the Companies Act, 2013? Section 128 Section 148 Section 139 Section 135 None 40. Which rules govern the maintenance of cost records in India? Companies (Cost Records and Audit) Rules, 2014 Companies (Audit and Auditors) Rules, 2014 Companies (Management and Administration) Rules, 2014 Companies (Accounts) Rules, 2014 None 1 out of 4 May the best brain win! Let the games begin! May knowledge be your guide, and may your answers be swift and precise.Embrace the challenge, unleash your potential, and may the thrill of the competition ignite your passion for learning. Good luck to you! Your quiz time is about to finish. 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