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2026 Statistics

Key Facts: CMA Final Paper 17 Exam

100

Marks in the Paper

ICMAI Syllabus 2022

3 hours

Exam Duration

ICMAI Syllabus 2022

50%

Section A Cost Audit Weight

ICMAI Syllabus 2022

4 forms

CRA-1 to CRA-4

Cost Records and Audit Rules 2014

Section 148

Cost Audit Provision

Companies Act 2013

40% / 50%

Pass: Paper / Group Aggregate

ICMAI Examination Rules

CMA Final Paper 17 (Cost and Management Audit) under ICMAI Syllabus 2022 is a 100-mark, 3-hour Group IV paper. It is divided into Section A: Cost Audit (50%), Section B: Management Audit (20%), Section C: Internal Control, Internal Audit, Operational Audit and Other Related Issues (20%), and Section D: Forensic Audit and Anti-Money Laundering (10%). Cost audit topics centre on the Companies (Cost Records and Audit) Rules 2014, CRA-1 to CRA-4 forms, cost auditor appointment under Section 148, and Cost Accounting Standards. To pass, candidates need 40% in the paper and 50% aggregate in the group.

Sample CMA Final Paper 17 Practice Questions

Try these sample questions to test your CMA Final Paper 17 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Companies (Cost Records and Audit) Rules, 2014, which form is used by a cost auditor to submit the cost audit report to the Board of Directors of the company?
A.Form CRA-4
B.Form CRA-1
C.Form CRA-2
D.Form CRA-3
Explanation: Form CRA-3 is the prescribed format in which the cost auditor submits the cost audit report to the Board of Directors. CRA-1 prescribes the particulars of cost records, CRA-2 is the intimation of appointment of cost auditor to the Central Government, and CRA-4 is used by the company to file the cost audit report in XBRL with the Central Government.
2Within how many days of receipt of the cost audit report from the cost auditor must a company furnish the report (Form CRA-4) to the Central Government under the Companies (Cost Records and Audit) Rules, 2014?
A.180 days
B.15 days
C.30 days
D.60 days
Explanation: Rule 6(6) of the Companies (Cost Records and Audit) Rules, 2014 requires a company to furnish the cost audit report along with full information and explanation on every qualification or reservation to the Central Government in Form CRA-4 within 30 days from the date of receipt of a copy of the cost audit report.
3The cost auditor of a company under Section 148 of the Companies Act, 2013 is appointed by:
A.The Board of Directors
B.The Central Government
C.The Comptroller and Auditor General of India
D.The shareholders at the AGM
Explanation: Under Section 148(3) of the Companies Act, 2013 read with Rule 6 of the Cost Records and Audit Rules, the cost auditor is appointed by the Board of Directors. The remuneration so fixed by the Board is subsequently ratified by the shareholders, but the appointment itself is a Board function.
4A cost auditor under Section 148 of the Companies Act, 2013 must be:
A.A Chartered Accountant in practice
B.A Cost Accountant in practice
C.A Company Secretary in practice
D.Any person with an MBA in Finance
Explanation: Section 148(3) provides that the cost audit shall be conducted by a Cost Accountant who is a member of the Institute of Cost Accountants of India and holds a certificate of practice. A statutory (financial) auditor under Section 139 cannot be appointed as the cost auditor of the same company.
5Under the Companies (Cost Records and Audit) Rules, 2014, the particulars relating to the items of costs to be included in the cost records are prescribed in:
A.Form CRA-2
B.Form CRA-3
C.Schedule III of the Companies Act
D.Form CRA-1
Explanation: Form CRA-1 specifies the particulars relating to the items of cost to be maintained in the cost records, organised under headings such as material costs, employee costs, utilities, depreciation, repairs and maintenance, and overheads. Maintaining records in conformity with CRA-1 is mandatory for companies covered under Rule 3.
6Cost audit primarily aims to verify the cost accounting records and ensure adherence to the cost accounting plan. This concept is best described as:
A.A review of the bank reconciliation statement
B.A verification of the financial profit only
C.A propriety and accuracy audit of cost records
D.A statutory tax computation exercise
Explanation: Cost audit is the verification of the correctness of cost accounts and a check on the adherence to the cost accounting plan. It examines both the arithmetical accuracy of cost records and the propriety (wisdom and economy) of expenditure, ensuring conformity with cost accounting principles, plans and objectives.
7Companies engaged in the production of goods or provision of services in the regulated sectors and certain non-regulated sectors are required to maintain cost records if their overall turnover from all products and services during the immediately preceding financial year is:
A.Rs. 35 crore or more
B.Rs. 50 crore or more
C.Rs. 100 crore or more
D.Rs. 25 crore or more
Explanation: Under Rule 3 of the Companies (Cost Records and Audit) Rules, 2014, companies engaged in the specified regulated and non-regulated sectors having an overall turnover of Rs. 35 crore or more in the immediately preceding financial year are required to maintain cost records in Form CRA-1.
8For companies in the NON-REGULATED sectors, cost audit is applicable if the overall annual turnover is Rs. 100 crore or more AND the aggregate turnover of the individual product(s) or service(s) for which cost records are required is:
A.Rs. 25 crore or more
B.Rs. 35 crore or more
C.Rs. 50 crore or more
D.Rs. 75 crore or more
Explanation: Under Rule 4 of the Cost Records and Audit Rules, for non-regulated sectors cost audit applies where the overall turnover is Rs. 100 crore or more and the aggregate turnover of the individual product(s) or service(s) for which cost records are required is Rs. 35 crore or more. Both conditions must be satisfied.
9For companies in the REGULATED sectors, cost audit is applicable if the overall annual turnover is Rs. 50 crore or more and the aggregate turnover of the individual product(s) or service(s) for which cost records are required is:
A.Rs. 35 crore or more
B.Rs. 50 crore or more
C.Rs. 10 crore or more
D.Rs. 25 crore or more
Explanation: Under Rule 4 of the Cost Records and Audit Rules, for regulated sectors cost audit applies where the overall turnover is Rs. 50 crore or more and the aggregate turnover of the individual product(s) or service(s) for which cost records are required is Rs. 25 crore or more.
10Which of the following is classified as a REGULATED sector under the Companies (Cost Records and Audit) Rules, 2014?
A.Sugar production
B.Garments and textiles
C.Telecommunication services
D.Steel manufacturing
Explanation: Telecommunication services regulated under the Telecom Regulatory Authority of India Act fall within the regulated sectors in Table A of Rule 3. Other regulated sectors include electricity, petroleum, drugs and pharmaceuticals, fertilisers and sugar. Textiles and steel are listed under the non-regulated sectors of Table B.

About the CMA Final Paper 17 Exam

CMA Final Paper 17, Cost and Management Audit (CMAD), is a Group IV paper under the ICMAI Syllabus 2022 covering cost audit and the Companies (Cost Records and Audit) Rules, management audit, internal control and operational audit, and forensic audit with anti-money laundering.

Assessment

Question count not published by the exam provider

Time Limit

3 hours

Passing Score

40% in the paper with 50% aggregate in the group, per ICMAI rules

Exam Fee

Covered within the ICMAI CMA Final group/examination fee; no standalone Paper 17 fee is published (The Institute of Cost Accountants of India (ICMAI))

CMA Final Paper 17 Exam Content Outline

50%

Section A: Cost Audit

Basics of cost audit, Companies (Cost Records and Audit) Rules 2014, CRA-1 to CRA-4 forms, cost auditor appointment and duties under Section 148, overview of Cost Accounting Standards, cost statements and profit reconciliation.

20%

Section B: Management Audit

Concept, scope and objectives of management audit, appraisal of functional areas, management audit questionnaire, corporate development audit, management reporting and performance evaluation.

20%

Section C: Internal Control, Internal Audit, Operational Audit and Other Related Issues

Internal control and the COSO framework, internal audit under Section 138, operational and value-for-money audit, internal financial controls, audit committee and audit of service organisations.

10%

Section D: Forensic Audit and Anti-Money Laundering

Introduction to forensic audit, fraud risk management, financial forensics and techniques, ethics and code of conduct, and anti-money laundering under PMLA, FATF and FIU-IND.

How to Pass the CMA Final Paper 17 Exam

What You Need to Know

  • Passing score: 40% in the paper with 50% aggregate in the group, per ICMAI rules
  • Assessment: Question count not published by the exam provider
  • Time limit: 3 hours
  • Exam fee: Covered within the ICMAI CMA Final group/examination fee; no standalone Paper 17 fee is published

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CMA Final Paper 17 Study Tips from Top Performers

1Allocate the most time to Section A: Cost Audit, which carries 50% of the marks, especially the Companies (Cost Records and Audit) Rules 2014 and the CRA forms.
2Memorise the turnover thresholds for cost records and cost audit applicability for regulated and non-regulated sectors.
3Learn the Cost Accounting Standards by number and subject so you can cite the correct CAS (e.g., CAS-4 for captive consumption).
4Practise the profit reconciliation between cost and financial accounts, a recurring exam favourite.
5For Section D, fix the three stages of money laundering, the role of FIU-IND and the ED, and the PMLA reporting thresholds.
6Use the official ICMAI MCQ Bank and past suggested answers to test recall before attempting full descriptive papers.

Frequently Asked Questions

What is CMA Final Paper 17 about?

Paper 17 of the ICMAI CMA Final, titled Cost and Management Audit (CMAD), is a Group IV paper under Syllabus 2022. It covers cost audit and the Companies (Cost Records and Audit) Rules, management audit, internal control and operational audit, and forensic audit with anti-money laundering.

How is CMA Final Paper 17 structured by sections?

Under Syllabus 2022, the paper is divided into Section A: Cost Audit (50%), Section B: Management Audit (20%), Section C: Internal Control, Internal Audit, Operational Audit and Other Related Issues (20%), and Section D: Forensic Audit and Anti-Money Laundering (10%).

Is CMA Final Paper 17 a multiple-choice exam?

No. ICMAI conducts Paper 17 as a 100-mark descriptive examination of 3 hours, which may include objective components. The Institute also publishes an official MCQ Bank, and practising MCQs is an effective way to build conceptual recall for the descriptive paper.

What is the passing requirement for CMA Final Paper 17?

Per ICMAI examination rules, a candidate must score at least 40% in an individual paper and 50% in the aggregate of the group. A score of 60% or more in a paper can earn an exemption in subsequent attempts of that group.

Which forms are central to the cost audit portion of Paper 17?

The Companies (Cost Records and Audit) Rules 2014 prescribe Form CRA-1 (particulars of cost records), CRA-2 (intimation of cost auditor appointment), CRA-3 (the cost audit report) and CRA-4 (filing the report with the Central Government in XBRL).

Who can be appointed as a cost auditor under Section 148?

Under Section 148 of the Companies Act 2013, only a Cost Accountant in practice who is a member of ICMAI can conduct the cost audit. The cost auditor is appointed by the Board of Directors, and the remuneration is ratified by the members.

Does Section D really cover anti-money laundering law?

Yes. Section D introduces forensic audit and anti-money laundering, including the Prevention of Money Laundering Act 2002 (PMLA), FATF international standards, the Financial Intelligence Unit-India, KYC and customer due diligence requirements.

How long should I study for CMA Final Paper 17?

Most candidates spend roughly 150 to 250 hours on Paper 17. Cost Audit (Section A) carries half the marks, so the largest share of study time should go to the Cost Records and Audit Rules and Cost Accounting Standards.