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 section of the Companies Act, 2013 deals with the maintenance of cost records? Section 139 Section 148 Section 233 Section 92 None 2. Cost audit is applicable to companies that meet which of the following criteria? Net worth exceeding ₹5 crore Turnover exceeding ₹50 crore Turnover exceeding ₹100 crore and falling under specified sectors Any company as per management discretion None 3. Who is eligible to be appointed as a Cost Auditor? A practicing Chartered Accountant A Cost Accountant in practice A Company Secretary Any finance professional None 4. What is the primary objective of cost audit? To determine tax liability To assess company profitability To verify cost accounting records and ensure efficiency To replace financial audit None 5. Cost audit reports are submitted to: SEBI Shareholders Board of Directors and Central Government Banks and Financial Institutions None 6. Which of the following is a key Cost Audit Standard issued by ICMAI? CAS-1 CAS-4 CAS-6 CAS-102 None 7. The format of the Cost Audit Report is prescribed in which form? Form CRA-1 Form CRA-2 Form CRA-3 Form CRA-4 None 8. The appointment of a Cost Auditor is reported to the government in which form? CRA-1 CRA-2 CRA-3 CRA-4 None 9. A Cost Auditor must report fraud above what amount to the Central Government? ₹1 crore ₹10 lakh ₹50 lakh ₹25 lakh None 10. Cost Auditors should follow which ethical guidelines? ICMAI Cost Audit Standards ICAI Audit Guidelines ICSI Audit Framework None of the above None 11. Management audit primarily evaluates: Financial statements Operational efficiency and effectiveness Tax planning Compliance with labor laws None 12. Which of the following is NOT an objective of Management Audit? Performance improvement Fraud detection Policy evaluation Compliance with company laws None 13. Which function is typically evaluated in Management Audit? Production Process Human Resource Efficiency Marketing Effectiveness All of the above None 14. Which of the following is NOT a limitation of management audit? Subjective judgment High cost Helps in improving efficiency Time-consuming process None 15. Which key area does a Management Audit NOT focus on? Decision-making efficiency Risk assessment Statutory tax compliance Organizational policies None 16. Which component is NOT a part of internal control? Control environment Risk assessment External audit Monitoring activities None 17. Which is a primary objective of operational audit? Evaluate financial statements Improve operational efficiency Identify fraud Ensure tax compliance None 18. Which type of audit examines the cost-effectiveness of company operations? Cost Audit Financial Audit Operational Audit Statutory Audit None 19. Which of the following is an example of operational audit? Reviewing sales invoices Assessing inventory management efficiency Filing income tax returns Conducting shareholder meetings None 20. Who generally conducts internal audits in an organization? External Auditor CFO Internal Audit Team Government Regulator None 21. Which of the following industries is required to maintain cost records? IT sector Banking sector Steel manufacturing Retail business None 22. Cost Audit helps in: Price fixation Financial Statement Analysis Filing Income Tax Auditing of shareholders None 23. What is the full form of XBRL in cost audit reporting? Extensive Business Research Language eXtensible Business Reporting Language External Business Research Law None of the above None 24. Who appoints the Cost Auditor in a company? Shareholders Board of Directors Audit Committee Government Authority None 25. What is the penalty for non-compliance with cost audit provisions under the Companies Act? ₹1,00,000 - ₹5,00,000 ₹50,000 - ₹2,00,000 ₹5,000 - ₹50,000 No penalty None 26. Which of the following is NOT an objective of cost audit? Cost control and cost reduction Ensuring compliance with financial reporting standards Identifying wasteful expenditure Assisting management in decision-making None 27. Who has the ultimate responsibility for ensuring cost records are maintained? Cost Accountant Chief Financial Officer (CFO) Board of Directors Government Auditor None 28. Under the Companies Act, cost records should be maintained in which format? Form CRA-1 Form CRA-3 Form MGT-7 Form AOC-4 None 29. The tenure of a Cost Auditor is generally for: 1 year 3 years 5 years Indefinite period None 30. Which of the following industries is exempt from cost audit? Electricity generation Healthcare services Petroleum refining Pharmaceuticals None 31. CAS-4 is related to: Material Cost Overheads Cost of Production for Captive Consumption Employee Cost None 32. The purpose of CAS-6 is to provide guidelines on: Depreciation Material Cost Direct Expenses Administrative Overheads None 33. Which Cost Accounting Standard deals with Research & Development Costs? CAS-12 CAS-18 CAS-20 CAS-22 None 34. Cost of Utilities is covered under which CAS? CAS-8 CAS-12 CAS-14 CAS-22 None 35. CAS-10 deals with which of the following? Repairs & Maintenance Cost Selling & Distribution Cost Employee Cost Depreciation Cost None 36. The due date for submission of the Cost Audit Report to the Board of Directors is within how many days from the end of the financial year? 120 days 150 days 180 days 210 days None 37. Which regulatory body prescribes the rules for cost audit in India? SEBI ICAI MCA RBI None 38. What is the penalty for non-submission of the Cost Audit Report within the stipulated time? ₹50,000 - ₹2,00,000 ₹1,00,000 - ₹5,00,000 ₹5,000 - ₹50,000 No penalty None 39. Which of the following information is NOT included in the cost audit report? Cost Sheet Pricing Decisions Employee Performance Ratings Production Efficiency None 40. Which of the following is the primary reason for implementing cost audits in industries? To ensure tax compliance To improve cost efficiency and competitiveness To satisfy shareholders To attract investors 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. 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