Interview Test 14 Test 14 Welcome to AADVIKMS! Empowering Finance Careers Connect with top finance professionals and employers for exciting opportunities. Total Number of Questions: 40 Time: 40 Minutes All the best... Kind Regards CMA Madhuri Kashyap & CMA Sandeep Kumar - Founder - International Navodaya Chamber of Commerce Name Email Phone State 1. What is the primary purpose of cost records? To calculate sales price To control production To ascertain and control costs To determine tax liabilities None 2. Which section of the Companies Act, 2013 mandates cost audit? Section 139 Section 148 Section 186 Section 210 None 3. Who is responsible for appointing a cost auditor in a company? Board of Directors Shareholders Central Government CFO None 4. What is the primary document guiding cost records and audit? Income Tax Act Companies (Cost Records and Audit) Rules, 2014 Companies Act, 1956 SEBI Regulations None 5. Which entity issues the cost audit report to the company? Tax authorities Cost Auditor Internal Auditor SEBI None 6. What is the duration for which cost records must be preserved? 3 years 5 years 8 years 10 years None 7. Who reviews and approves the cost audit report? CFO Board of Directors CEO Shareholders None 8. Which of the following is NOT part of a cost audit? Verifying sales invoices Checking compliance with cost accounting standards Evaluating cost control measures Ensuring accurate recording of costs None 9. Which cost is often the primary focus of a cost audit? Direct materials Production cost Marketing expenses Administrative expenses None 10. The cost auditor's appointment must be approved by the company's shareholders at the next: Extraordinary General Meeting Annual General Meeting Board Meeting Audit Committee Meeting None 11. The cost auditor submits the cost audit report to the company’s: Chief Financial Officer Board of Directors Internal Auditor HR Department None 12. Which audit report form is used for cost audits? CRA-2 CRA-3 CRA-4 CRA-5 None 13. Which authority mandates Cost Audit? SEBI Central Government RBI State Government None 14. Cost records are primarily required for which type of industries? All industries Banking Specified industries Service industries None 15. Cost records must comply with which standards? IFRS Cost Accounting Standards (CAS) GAAP Ind AS None 16. Which form is used for filing the cost audit report with the government? CRA-2 CRA-3 CRA-4 CRA-5 None 17. The primary purpose of cost audit is to: Detect fraud Monitor profits Ensure compliance with cost accounting principles Manage investments None 18. Which document does the cost auditor review to understand raw material costs? Sales invoices Material requisition slips Tax returns Cash flow statements None 19. Cost audit assists in determining: Product profitability Total revenue Market share Fixed asset None 20. In which year did cost audit become mandatory for certain industries in India? 1965 1973 2014 2018 None 21. Which costs are usually excluded from the cost audit scope? Direct material costs Financial and investment costs Production costs Overheads None 22. Which of the following is not typically verified in a cost audit? Cost ledger Financial ledger Labor cost records Production cost records None 23. The responsibility to implement cost records lies with the:r Cost Auditor Company Management Shareholders External Audito None 24. Cost accounting standards in India are issued by SEBI ICMAI ICAI Ministry of Corporate Affairs None 25. Cost audit is primarily concerned with: Verifying sales transactions Evaluating cost control mechanisms Checking shareholder dividends Auditing tax returns None 26. Which of the following is a key benefit of conducting a cost audit? Enhancing tax compliance Improving cost control and efficiency Increasing sales revenue Reducing employee turnover None 27. The term 'cost auditor' refers to: An internal auditor specializing in cost analysis A chartered accountant appointed to audit cost records A government official overseeing company finances financial analyst in a manufacturing firm None 28. Which form is used for intimation of the appointment of a cost auditor to the Central Government? CRA-1 CRA-2 CRA-3 CRA-4 None 29. The cost audit report should be submitted to the Board of Directors within how many days from the closure of the financial year? 30 days 60 days 90 days 120 days None 30. Which of the following industries is typically exempt from mandatory cost audit? Cement Pharmaceuticals Information Technology Steel None 31. The primary objective of maintaining cost records is to: Comply with tax regulations Determine product pricing Monitor and control operational efficiency Prepare financial statements None 32. Which document outlines the scope and methodology of a cost audit? Audit Plan Cost Audit Report Engagement Letter Cost Accounting Policy None 33. In cost accounting, 'CAS' stands for: Cost Audit Standards Cost Accounting Standards Corporate Accounting Standards Central Audit Standards None 34. Which of the following is not a component of cost records? Material cost records Labor cost records Overhead cost records Investment portfolio records None 35. The term 'cost audit' refers to: Financial audit of cost statements Systematic examination of cost records and verification of cost accounts Internal audit of financial transactions External audit of tax returns None 36. Which section of the Companies Act, 2013 deals with the maintenance of cost records? Section 128 Section 133 Section 148 Section 152 None 37. The cost auditor's report is submitted in which form? CRA-1 CRA-2 CRA-3 CRA-4 None 38. Which body is responsible for issuing Cost Accounting Standards in India? Institute of Chartered Accountants of India (ICAI) Institute of Cost Accountants of India (ICAI) Securities and Exchange Board of India (SEBI) Ministry of Corporate Affairs (MCA) None 39. The primary focus of a cost audit is to: Verify financial statements Assess tax liabilities Evaluate cost control and efficiency Audit sales transactions None 40. Which of the following is a statutory requirement under the Companies Act, 2013? Financial audit Internal audit Cost audit for specified companies Management audit None Thank you for participating in our test series! We hope it boosted your knowledge and prepared you well for finance job interviews. Keep leveraging what you've learned to build confidence and excel. Wishing you great success in your career journey! Time's upTime is Up!
