Question

Cost audit under sec 233 (b) of the companies Act is ..............


Voluntary

Compulsory

Advisable

Avoidable​

Answer 1

Cost audit under sec 233 (b) of the companies Act is ADVISABLE.

If the Central Government believes it is necessary in the case of any company required to include the particulars referred to therein in its books of account under clause (d) of sub-section (1) of section 209, it may order an audit of the company's cost accounts to be conducted in the manner specified in the order by an auditor who must be a cost accountant within the meaning of the Cost and Works Act.

Answer 2

Answer:

Explanation:

Section 233B:

If the Central Government believes it is necessary to do so in relation to any company required to include the particulars referred to therein in its books of account under clause (d) of sub-section (1) of section 209, the Central Government may order an audit of cost accounts.

For administrative choices, cost audit delivers credible cost data. It aids management in maintaining production control. It serves as an excellent administrative tool for detecting errors, frauds, and abnormalities so that the system may continue to run reliably and smoothly.

Hence, Cost audit under sec 233 (b) of the companies Act is Advisable.

Therefore, option (c) is the correct answer.

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