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 State 1. Who appoints the cost auditor in a company? Shareholders Board of Directors Audit Committee CFO None 2. Which of the following is NOT a qualification required for a Cost Auditor? Must be a practicing Cost Accountant Should not be disqualified under Section 141 of Companies Act Must be a Fellow Member of ICAI Must hold a valid Certificate of Practice from ICMAI None 3. Cost Auditors must submit their report within how many days of receiving cost records? 30 days 60 days 90 days 120 days None 4. Cost auditors must report any fraud above what amount to the Board and Central Government? ₹10 lakh ₹50 lakh ₹1 crore ₹5 crore None 5. Cost audit fees are decided by: Shareholders Board of Directors MCA SEBI None 6. Which form is used to appoint a cost auditor? CRA-1 CRA-2 CRA-3 CRA-4 None 7. The cost audit report is submitted in which form? CRA-3 CRA-4 MGT-7 AOC-4 None 8. What is the purpose of Form CRA-1? Format for cost records maintenance Cost audit appointment Cost audit report submission Financial statement filing None 9. Which annexure of the cost audit report contains the reconciliation of cost and financial accounts? Annexure 1 Annexure 2 Annexure 3 Annexure 4 None 10. Who is responsible for approving the cost audit report before submission? Cost Auditor CFO Board of Directors Statutory Auditor None 11. Which Companies Act section governs Cost Audit? Section 133 Section 144 Section 148 Section 230 None 12. Failure to maintain cost records can result in penalties under which rule? Companies (Audit & Auditors) Rules, 2015 Companies (Cost Records and Audit) Rules, 2014 Companies (Financial Reporting) Rules, 2017 SEBI LODR Regulations None 13. Which of the following sectors are exempt from cost audit? Telecommunication Banking Cement Power Generation None 14. A company failing to comply with cost audit provisions may face fines up to: ₹1 lakh ₹5 lakh ₹10 lakh ₹25 lakh None 15. The penalty for a cost auditor for non-compliance can include imprisonment for up to: 1 year 3 years 5 years 7 years None 16. Which CAS deals with Material Cost? CAS-3 CAS-6 CAS-7 CAS-11 None 17. Which CAS focuses on Employee Cost? CAS-3 CAS-5 CAS-7 CAS-10 None 18. Which CAS applies to Overheads? CAS-2 CAS-5 CAS-11 CAS-16 None 19. CAS-14 covers which type of cost? Pollution Control Cost Repair & Maintenance Cost Packaging Cost Research & Development Cost None 20. Which of the following is NOT a Cost Accounting Standard? CAS-4: Selling & Distribution Cost CAS-9: Packing Material Cost CAS-16: Pollution Control Cost CAS-19: Blockchain Cost Accounting None 21. Which of the following industries is required to maintain cost records? IT Services Banking Cement Manufacturing Stock Broking None 22. A cost auditor should focus on which of the following aspects? Ensuring financial statement accuracy Examining cost efficiency & cost control measures Verifying tax compliance Conducting financial fraud investigations None 23. Which of the following is NOT a benefit of cost audit? Enhancing pricing strategies Improving cost efficiency Reducing statutory compliance Strengthening internal cost control systems None 24. Which is NOT a component of management audit? Evaluation of business strategies Performance analysis Statutory audit of financial statements Organizational efficiency review None 25. Cost audit is mandatory for companies if their turnover exceeds: ₹10 crore ₹50 crore ₹100 crore ₹500 crore None 26. Which sector is NOT required to maintain cost records under Companies (Cost Records and Audit) Rules, 2014? Telecommunication Banking Pharmaceuticals Electricity None 27. Which industry is included under regulated sectors for cost audit applicability? Textile Petroleum & Gas IT Services Automobile None 28. Cost audit is mandatory for manufacturing companies if their turnover exceeds: ₹25 crore ₹50 crore ₹100 crore ₹500 crore None 29. For regulated sectors, cost audit is mandatory if the turnover exceeds: ₹10 crore ₹25 crore ₹50 crore ₹75 crore None 30. Which of the following is a direct benefit of cost audit for management Tax compliance Better financial reporting Identification of cost-saving opportunities Ensuring statutory compliance None 31. The reconciliation of cost and financial accounts is required in which part of the cost audit report? Part A Part B Annexure 1 Annexure 4 None 32. Which regulatory body enforces cost audit compliance in India? SEBI MCA RBI NCLT None 33. Which form is used for cost auditor’s report submission? CRA-2 CRA-3 CRA-4 AOC-4 None 34. Who is responsible for ensuring the accuracy of cost records? Cost Auditor Board of Directors CFO Statutory Auditor None 35. Which of the following is NOT included in a cost audit report? Cost Audit Observations Cost Statements Cash Flow Statement Annexures on Cost Records None 36. Failure to maintain cost records can lead to penalties under which Companies Act section? Section 133 Section 141 Section 148 Section 197 None 37. A cost auditor must submit the audit report within how many days of the financial year-end? 90 days 120 days 150 days 180 days None 38. Which ethical principle is most critical for a cost auditor? Confidentiality Marketing Skills Aggressive Pricing Strategies Flexibility in Reporting None 39. Which of the following is a key focus of management audit? Compliance with financial reporting Improving operational efficiency Preparing tax returns Statutory Audit Requirements None 40. Who approves the cost audit report before submission? Cost Auditor CFO Board of Directors Internal Auditor 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!
