Page 145 - DCOM206_COST_ACCOUNTING_II

Cost Accounting – II Pooja, Lovely Professional University

Notes Unit 8: Cost Audit

CONTENTS
Objectives
Introduction
8.1 Scope and Areas of Cost Audit
8.1.1 Objectives of Cost Audit

8.2 Types of Cost Audit
8.3 Advantages and Disadvantages of Cost Audit
8.3.1 Advantages
8.3.2 Disadvantages
8.3.3 Difference between Financial Audit and Cost Audit
8.4 Cost Auditor: Appointment, Eligibility, Rights and Responsibilities
8.4.1 Appointment of Cost Auditor

8.4.2 Eligibility for Appointment of Cost Auditor
8.4.3 Rights of a Cost Auditor
8.4.4 Responsibilities of a Cost Auditor
8.5 Cost Audit in India
8.5.1 Cost Audit Report and Its Format
8.6 Summary
8.7 Keywords
8.8 Review Questions
8.9 Further Readings

Objectives

After studying this unit, you will be able to:

 Explain the meaning, objectives, scope and types of cost audit;
 Discuss the advantages and disadvantages of cost audit;
 Describe the appointment, eligibility, rights and responsibilities of a cost auditor;
 Interpret cost audit in India.
Introduction

With the emergence of accountability as an important aspect of business enterprise whether in
the public sector or in the private sector, the auditing of accounts has assumed enormous
significance. As such, different types of audit are in use, which are as under:
 Cost Audit,
 Financial Audit, and
 Management Audit.

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