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. Who approves the cost audit report before submission to the Central Government? CFO Board of Directors Internal Auditor Statutory Auditor None 2. Which of the following is NOT a type of Cost Audit? Efficiency Audit Proprietary Audit Statutory Audit Social Audit None 3. Cost Audit applies to companies engaged in: Manufacturing only Service sector only Both manufacturing and service sector Trading business only None 4. Who determines the scope of Cost Audit? Board of Directors Government and ICMAI Cost Auditor Internal Auditor None 5. Cost Auditor is required to report under which form for cost audit compliance? CRA-2 CRA-3 CRA-4 CRA-1 None 6. Which of the following techniques is NOT commonly used in Cost Audit? Standard Costing Budgetary Control Cash Flow Analysis Cost Reconciliation None 7. Which principle is most relevant in Cost Audit? Cost-Benefit Principle Materiality Principle Historical Cost Principle Matching Principle None 8. Which cost accounting standard deals with Depreciation? CAS-5 CAS-6 CAS-7 CAS-8 None 9. CAS-11 relates to: Research and Development Cost Selling and Distribution Overheads Employee Cost Utilities Cost None 10. Cost Accounting Standard (CAS) related to Pollution Control Costs is: CAS-12 CAS-14 CAS-16 CAS-19 None 11. Cost Auditor should be appointed within how many days of the commencement of the financial year? 30 days 90 days 120 days 180 days None 12. 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 13. Which of the following reports is required under cost audit? Tax Audit Report Performance Audit Report Compliance Report Shareholders’ Report None 14. The responsibility of appointing a Cost Auditor lies with: Board of Directors Audit Committee Statutory Auditor Shareholders None 15. A cost audit report should be submitted to the Board of Directors within: 60 days 90 days 120 days 160 days None 16. Cost Audit is mandatory for companies engaged in: IT services Power generation Trading activities Banking and Insurance None 17. Cost Audit for pharmaceutical companies is applicable if their turnover is above: ₹10 crore ₹25 crore ₹50 crore ₹80 crore None 18. Which industry is NOT covered under mandatory cost audit? Steel Cement Insurance Fertilizers None 19. Cost Audit is applicable to Sugar Industry if its turnover exceeds: ₹10 crore ₹20 crore ₹50 crore ₹100 crore None 20. Which sector follows CAS-22 for cost computation? Mining Telecommunication Healthcare Banking None 21. Which form is required for the appointment of a Cost Auditor? CRA-1 CRA-2 CRA-3 CRA-4 None 22. Failure to file the cost audit report within the due date can result in: ₹10,000 fine ₹1,00,000 fine ₹5,00,000 fine ₹5000 fine None 23. Penalty for non-maintenance of cost records can extend up to: ₹25,000 ₹50,000 ₹1,00,000 ₹5,00,000 None 24. Who is responsible for compliance with Cost Audit regulations? Cost Auditor CFO Board of Directors Statutory Auditor None 25. If a company fails to appoint a cost auditor, the penalty is applicable to: The company only The directors only Both the company and officers in default Only the CFO None 26. The cost audit report should be signed by: CFO Managing Director Cost Auditor Board of Directors None 27. Which of the following statements is TRUE about Cost Audit? It is optional for all companies It is a statutory requirement for specific industries It replaces statutory audits It is applicable only to private companies None 28. Ethical behavior in cost audit helps in: Enhancing stakeholder confidence Increasing tax savings Improving operational processes Simplifying reporting formats None 29. Which authority prescribes the Cost Audit Rules in India? SEBI ICMAI Ministry of Corporate Affairs (MCA) RBI None 30. What is the key difference between Financial Audit and Cost Audit? Cost Audit focuses on statutory compliance Financial Audit examines cost control Cost Audit focuses on efficiency and waste reduction Cost Audit is done by external auditors None 31. Which form is used to intimate the cost auditor's appointment to the Central Government? CRA-1 CRA-2 CRA-3 CRA-4 None 32. Which of the following is NOT included in cost records? Cost of raw materials Selling and distribution expenses Market research expenses Profit-sharing bonus None 33. Which cost audit report format is prescribed under the Companies (Cost Records and Audit) Rules, 2014? Form A Form CRA-3 Form 3CD Form 26AS None 34. Cost Audit Report must include: Director’s report Auditor’s qualifications Reconciliation of cost and financial accounts Share price analysis None 35. As per Companies Act, 2013, the penalty for incorrect cost audit reporting may extend up to: ₹1,00,000 ₹5,00,000 ₹10,00,000 ₹50,000 None 36. Which of the following is NOT a type of Cost Audit? Efficiency Audit Social Audit Product Audit Internal Financial Audit None 37. The primary focus of Social Audit in cost auditing is: Profit Maximization Environmental and social responsibilities Shareholder Wealth Internal Financial Control None 38. Which of the following is an objective of Management Audit? Evaluating profit margins Assessing managerial effectiveness Verifying tax compliance Preparing statutory accounts None 39. Cost Audit primarily benefits which stakeholders? Shareholders Management Government All of the above None 40. Which audit evaluates whether company resources are used efficiently and effectively? Financial Audit Cost Audit Management Audit Tax Audit 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!
