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Cost audit under Section 148 applies to companies engaged in specified industries with turnover/net-worth thresholds. The cost auditor is appointed by:
AThe Central Government
BThe audit committee or Board of the company (after the statutory auditor's appointment)
CMembers at an AGM
DThe C&AG
Answer & Solution
Correct answer: B. The audit committee or Board of the company (after the statutory auditor's appointment)
1. Section 148 — cost auditor is appointed by the BOARD on the recommendation of the audit committee (where required), and remuneration is ratified by shareholders.
2. Eligibility: a cost accountant in practice.
3. Hence (A).
_Source: ICAI BoS CA Inter Paper 2 — Audit and Auditors_