Concept of Auditing

Auditing (APFC)

Title

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Indian Economy - Understanding the basics of Indian economic system

Cost audit under section 233(B. of the companies act is ___________.

voluntary

compulsory

advisable

avoidable

- Option 1: Voluntary

Cost audit under section 233(B) is not voluntary. Companies cannot choose to do it at will.

- Option 2: Compulsory

Section 233(B) of the Companies Act makes cost audit compulsory for certain specified companies as directed by the government.

- Option 3: Advisable

It is not just advisable. It is mandated by law for specified companies.

- Option 4: Avoidable

Cost audit under this section cannot be avoided if the company falls under the specified category.

Correct answer: Option 2 – Compulsory