The correct answer is: B. Company
Statutory cost audit is applicable only to companies. It is a type of audit that is conducted by a qualified auditor to ensure that the company’s costs are properly recorded and reported. The audit is required by law for companies that are listed on a stock exchange or that have a certain level of turnover.
The purpose of a statutory cost audit is to ensure that the company’s costs are accurate and that they are in accordance with the company’s accounting policies. The audit also helps to ensure that the company’s costs are being managed effectively.
The auditor will review the company’s cost records and procedures to ensure that they are adequate and that they are being followed. The auditor will also review the company’s cost reports to ensure that they are accurate and that they comply with the company’s accounting policies.
If the auditor finds any problems with the company’s cost records or procedures, the auditor will report these problems to the company. The company will then be required to take steps to correct the problems.
Statutory cost audit is an important part of ensuring that companies are operating in a responsible and ethical manner. It helps to ensure that companies are reporting accurate and reliable financial information. It also helps to ensure that companies are managing their costs effectively.
The other options are incorrect because they are not types of entities that are required to have a statutory cost audit.
- Option A: Firm. A firm is a business entity that is owned and operated by one or more individuals. Firms are not required to have a statutory cost audit.
- Option C: Individual. An individual is a person who is not part of a business entity. Individuals are not required to have a statutory cost audit.
- Option D: Society. A society is a non-profit organization that is formed to promote a particular cause or interest. Societies are not required to have a statutory cost audit.