State whether the following statements based on the quoted terms are “TRUE” or “FALSE”, with justifications for your answer. No credit will be given for any answer without justifications :
Q1: A Cost Accountant, who is appointed as the Concurrent Auditor of a Company, can accept appointment as Cost Auditor of the same Company.
Q2: M/s. JTS Company situated in Jamshedpur has been planning to file a single form 23C by appointing BMS & Associates a Cost Audit firm for all the three different types of products covered under Cost Audit.
Q3: It is imperative that a Resolution has to be passed by the Board of Directors for the appointment of the Cost Auditor.
Q4: The Cost Accounting Record Rules are applicable to all Companies including to other form of business.
Q5: In view of e-filing of Cost Audit Report, only one hard copy is required to be submitted to the Audit Branch.
Fill in the blanks in the following sentences by using appropriate word(s)/phrase(s)/number(s) :
Q1: The __________ will be the Secretary of the Cost Accounting Standard Board (CASB).
Ans: Director (Technical), The Institute of Cost Accountants of India.
Q2: There __________ violation of section 215 of the Companies Act 1956 where the audit of Accounts is completed before approval of the Balance Sheet by the Board of Directors.
Ans: is no
Q3: The Cost Accounting Record Rules were first made for the __________ Industry.
Q4: Outward transportation Cost as per CAS-5 shall form part of Cost of __________ .
Q5: Rectified spirit is covered by the Cost Accounting Record ( __________ ) Rules 1997.
Ans: Industrial Alcohol
In each of the cases/statements given below, one out of four alternatives is correct. Indicate the correct (only indicate A or B or C or D as you think correct) :
Q1: Abnormal non-recurring Costs are being dealt with Annexure to the Cost Audit Report Rules in
C. Para-17 [Ans]
Q2: Cost Auditor should inform to the Central Government in Form 23D of his appointment within :
A. 90 days from receiving formal letter from the company.
B. 30 days from receiving formal letter from the company. [Ans]
C. 90 days from the date of commencing of the current financial year.
D. 45 days from the date of commencing of the current financial year.
Q3: Cost Auditor is required to provide reply to any clarification sought for, by the CentralGovernment from the Cost Auditor in writing of the receipt of the communication addressedto him calling such clarification within
A. 45 days of the receipt of the communication.
B. 30 days of the receipt of the communication. [Ans]
C. 180 days of the receipt of the communication.
D. 120 days of the receipt of the communication.
Q4: Where default is made by the Cost Auditor in complying with the provisions of Rule 4 or Rule 5 (of the Cost Audit Report Rules) he shall be punishable with fine which may extend to
C. Rs.5000 [Ans]
D. None of the above.
SECTION – II
State whether the following statements are TRUE or FALSE with justification for your answer. No credit will be given for merely answering TRUE or FALSE — without giving any justification/ reasoning:
Q1: Dumping is an ‘illegal’ practice
Q2: GATT and its agreement are permanent.
Q3: There are no fixed items of evidence to be checked by Management Auditor.
Q4: Three-fourths of the members of the Audit Committee shall be independent directors.
Fill in the blanks in the following sentences by using appropriate word(s)/phrase(s) :
Q1: The Secretariat of WTO is headed by a __________ .
Q2: Quality Review Board (QRB) consists of a Chairperson and __________other members.
Q3: ISO 9000 Certification is an __________ service.
Ans: Assurance Service
Q4:__________ is needed to create a Corporate Culture of transparency.
Ans: Corporate Governance
Q5: The origin of the term “Due Diligence” owes to __________.
Ans: US securities Act, 1933
What do the following abbreviations stand for?
Ans: Multilateral Trade Agreements
Ans: Trade Policy Review Body
Ans: Certified Facilitation Centre
Ans: Trade-Related Aspects of Intellectual Property Rights
Ans: Central Revenue Audit